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Marathon Petroleum (MPC) Dips More Than Broader Markets: What You Should Know

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Marathon Petroleum (MPC - Free Report) closed at $123.66 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 3.27%.

Prior to today's trading, shares of the refiner had lost 1.07% over the past month. This has was narrower than the Oils-Energy sector's loss of 10.83% and the S&P 500's loss of 3.02% in that time.

Marathon Petroleum will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. In that report, analysts expect Marathon Petroleum to post earnings of $5.27 per share. This would mark year-over-year growth of 253.69%. Meanwhile, our latest consensus estimate is calling for revenue of $31.03 billion, down 19.15% from the prior-year quarter.

MPC's full-year Zacks Consensus Estimates are calling for earnings of $19.88 per share and revenue of $130.11 billion. These results would represent year-over-year changes of -24.01% and -27.7%, respectively.

Any recent changes to analyst estimates for Marathon Petroleum should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.66% higher. Marathon Petroleum is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Marathon Petroleum's current valuation metrics, including its Forward P/E ratio of 6.3. This valuation marks a premium compared to its industry's average Forward P/E of 6.19.

Meanwhile, MPC's PEG ratio is currently 0.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing was holding an average PEG ratio of 0.65 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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