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Marathon Petroleum (MPC) Registers a Bigger Fall Than the Market: Important Facts to Note

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Marathon Petroleum (MPC - Free Report) closed the most recent trading day at $149.45, moving -0.93% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.

The refiner's shares have seen a decrease of 1.69% over the last month, not keeping up with the Oils-Energy sector's loss of 0.51% and outstripping the S&P 500's loss of 3.95%.

The upcoming earnings release of Marathon Petroleum will be of great interest to investors. The company's earnings report is expected on October 31, 2023. It is anticipated that the company will report an EPS of $7.48, marking a 4.23% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $35.26 billion, indicating a 25.36% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $22.63 per share and revenue of $142.35 billion, indicating changes of -13.49% and -20.9%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marathon Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.15% higher. Right now, Marathon Petroleum possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Marathon Petroleum is presently being traded at a Forward P/E ratio of 6.67. This signifies a discount in comparison to the average Forward P/E of 6.94 for its industry.

It's also important to note that MPC currently trades at a PEG ratio of 1.11. 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. MPC's industry had an average PEG ratio of 0.99 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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