Back to top

Image: Bigstock

Why Marathon Petroleum (MPC) Dipped More Than Broader Market Today

Read MoreHide Full Article

In the latest trading session, Marathon Petroleum (MPC - Free Report) closed at $148.38, marking a -1.66% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.36%.

Shares of the refiner have appreciated by 3.99% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.19% and lagging the S&P 500's gain of 5.21%.

The investment community will be closely monitoring the performance of Marathon Petroleum in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. The company is forecasted to report an EPS of $2.65, showcasing a 60.15% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $34.03 billion, reflecting a 15.11% fall from the equivalent quarter last year.

MPC's full-year Zacks Consensus Estimates are calling for earnings of $22.04 per share and revenue of $147.19 billion. These results would represent year-over-year changes of -15.75% and -18.2%, respectively.

Any recent changes to analyst estimates for Marathon Petroleum should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.91% lower. Marathon Petroleum is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 6.85. This indicates a discount in contrast to its industry's Forward P/E of 6.9.

Investors should also note that MPC has a PEG ratio of 1.14 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

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 70, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Marathon Petroleum Corporation (MPC) - free report >>

Published in