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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Marathon Petroleum (MPC - Free Report) is a stock many investors are watching right now. MPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.95. Over the past year, MPC's P/B has been as high as 1.98 and as low as 1.36, with a median of 1.67.
Finally, investors will want to recognize that MPC has a P/CF ratio of 3.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's P/CF compares to its industry's average P/CF of 4.74. Over the past year, MPC's P/CF has been as high as 4.10 and as low as 2.39, with a median of 3.38.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at PBF Energy (PBF - Free Report) . PBF is a # 2 (Buy) stock with a Value score of A.
PBF Energy sports a P/B ratio of 0.92 as well; this compares to its industry's price-to-book ratio of 1.95. In the past 52 weeks, PBF's P/B has been as high as 1.24, as low as 0.75, with a median of 0.99.
These are only a few of the key metrics included in Marathon Petroleum and PBF Energy 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 PBF 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Marathon Petroleum (MPC - Free Report) is a stock many investors are watching right now. MPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is MPC's P/B ratio of 1.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.95. Over the past year, MPC's P/B has been as high as 1.98 and as low as 1.36, with a median of 1.67.
Finally, investors will want to recognize that MPC has a P/CF ratio of 3.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's P/CF compares to its industry's average P/CF of 4.74. Over the past year, MPC's P/CF has been as high as 4.10 and as low as 2.39, with a median of 3.38.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at PBF Energy (PBF - Free Report) . PBF is a # 2 (Buy) stock with a Value score of A.
PBF Energy sports a P/B ratio of 0.92 as well; this compares to its industry's price-to-book ratio of 1.95. In the past 52 weeks, PBF's P/B has been as high as 1.24, as low as 0.75, with a median of 0.99.
These are only a few of the key metrics included in Marathon Petroleum and PBF Energy 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 PBF look like an impressive value stock at the moment.