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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that MPC holds a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's PEG compares to its industry's average PEG of 0.58. Over the last 12 months, MPC's PEG has been as high as 1.23 and as low as 0.19, with a median of 0.33.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.79. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MPC's current P/B looks attractive when compared to its industry's average P/B of 2.03. MPC's P/B has been as high as 2.03 and as low as 1.21, with a median of 1.58, over the past year.
Finally, our model also underscores that MPC has a P/CF ratio of 3.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.26. Over the past 52 weeks, MPC's P/CF has been as high as 4.93 and as low as 2.91, with a median of 3.70.
Another great Oil and Gas - Refining and Marketing stock you could consider is Phillips 66 (PSX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Phillips 66 is currently trading with a Forward P/E ratio of 6.74 while its PEG ratio sits at 0.34. Both of the company's metrics compare favorably to its industry's average P/E of 5.77 and average PEG ratio of 0.58.
Over the last 12 months, PSX's P/E has been as high as 11.94, as low as 5.19, with a median of 7.43, and its PEG ratio has been as high as 1.06, as low as 0.30, with a median of 0.61.
Additionally, Phillips 66 has a P/B ratio of 1.42 while its industry's price-to-book ratio sits at 2.03. For PSX, this valuation metric has been as high as 2.40, as low as 1.15, with a median of 1.62 over the past year.
These are only a few of the key metrics included in Marathon Petroleum and Phillips 66 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MPC and PSX look like an impressive value stock at the moment.
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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that MPC holds a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's PEG compares to its industry's average PEG of 0.58. Over the last 12 months, MPC's PEG has been as high as 1.23 and as low as 0.19, with a median of 0.33.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.79. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MPC's current P/B looks attractive when compared to its industry's average P/B of 2.03. MPC's P/B has been as high as 2.03 and as low as 1.21, with a median of 1.58, over the past year.
Finally, our model also underscores that MPC has a P/CF ratio of 3.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.26. Over the past 52 weeks, MPC's P/CF has been as high as 4.93 and as low as 2.91, with a median of 3.70.
Another great Oil and Gas - Refining and Marketing stock you could consider is Phillips 66 (PSX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Phillips 66 is currently trading with a Forward P/E ratio of 6.74 while its PEG ratio sits at 0.34. Both of the company's metrics compare favorably to its industry's average P/E of 5.77 and average PEG ratio of 0.58.
Over the last 12 months, PSX's P/E has been as high as 11.94, as low as 5.19, with a median of 7.43, and its PEG ratio has been as high as 1.06, as low as 0.30, with a median of 0.61.
Additionally, Phillips 66 has a P/B ratio of 1.42 while its industry's price-to-book ratio sits at 2.03. For PSX, this valuation metric has been as high as 2.40, as low as 1.15, with a median of 1.62 over the past year.
These are only a few of the key metrics included in Marathon Petroleum and Phillips 66 strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MPC and PSX look like an impressive value stock at the moment.