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Are Investors Undervaluing Marathon Petroleum (MPC) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for MPC is its P/B ratio of 1.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.03. MPC's P/B has been as high as 1.98 and as low as 1.36, with a median of 1.69, over the past year.
Finally, we should also recognize that MPC has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MPC's P/CF compares to its industry's average P/CF of 4.94. Within the past 12 months, MPC's P/CF has been as high as 4.10 and as low as 2.39, with a median of 3.38.
Another great Oil and Gas - Refining and Marketing stock you could consider is Valero Energy (VLO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Valero Energy is trading at a forward earnings multiple of 7.03 at the moment, with a PEG ratio of 1.17. This compares to its industry's average P/E of 7.48 and average PEG ratio of 0.86.
Over the last 12 months, VLO's P/E has been as high as 8.76, as low as 4.41, with a median of 6.31, and its PEG ratio has been as high as 1.46, as low as 0.73, with a median of 1.05.
Additionally, Valero Energy has a P/B ratio of 1.65 while its industry's price-to-book ratio sits at 2.03. For VLO, this valuation metric has been as high as 2.31, as low as 1.39, with a median of 1.80 over the past year.
These are just a handful of the figures considered in Marathon Petroleum and Valero Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MPC and VLO is an impressive value stock right now.
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Are Investors Undervaluing Marathon Petroleum (MPC) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for MPC is its P/B ratio of 1.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.03. MPC's P/B has been as high as 1.98 and as low as 1.36, with a median of 1.69, over the past year.
Finally, we should also recognize that MPC has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MPC's P/CF compares to its industry's average P/CF of 4.94. Within the past 12 months, MPC's P/CF has been as high as 4.10 and as low as 2.39, with a median of 3.38.
Another great Oil and Gas - Refining and Marketing stock you could consider is Valero Energy (VLO - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Valero Energy is trading at a forward earnings multiple of 7.03 at the moment, with a PEG ratio of 1.17. This compares to its industry's average P/E of 7.48 and average PEG ratio of 0.86.
Over the last 12 months, VLO's P/E has been as high as 8.76, as low as 4.41, with a median of 6.31, and its PEG ratio has been as high as 1.46, as low as 0.73, with a median of 1.05.
Additionally, Valero Energy has a P/B ratio of 1.65 while its industry's price-to-book ratio sits at 2.03. For VLO, this valuation metric has been as high as 2.31, as low as 1.39, with a median of 1.80 over the past year.
These are just a handful of the figures considered in Marathon Petroleum and Valero Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MPC and VLO is an impressive value stock right now.