Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Murphy USA Inc. (MUSA) - $25 value - yours FREE >>
Marathon Petroleum Corporation (MPC) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Murphy USA Inc. (MUSA) - $25 value - yours FREE >>
Marathon Petroleum Corporation (MPC) - $25 value - yours FREE >>
Image: Bigstock
Marathon Petroleum Slips to Strong Sell on Estimate Revision
On Jul 13, Zacks Investment Research downgraded Marathon Petroleum Corporation (MPC - Free Report) – a leading independent refiner – to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Over the last 30 days, the Zacks Consensus Estimate for Marathon Petroleum for the second quarter of this year saw a downfall of more than 28% from $1.35 per share to 97 cents as all the estimates has been revised downward. Moreover, for full-year 2016, the company’s Zacks Consensus Estimate decreased to $3.08 per share from $3.82.
Additionally, the refining player could not manage to surpass the Zacks Consensus Estimate in three of the last four quarters and posted an average miss of 16.05%.
It is also to be considered that oil has recovered significantly after a long weakness and is now walking on the bullish path. Data wise, in mid-February, West Texas Intermediate (WTI) crude fell to a 12-year low mark of $26.05 per barrel. From there, the commodity improved almost 80% and closed yesterday at $46.80 per barrel. Since refiners are buyers of crude, this improvement on the crude front is not in favor of Marathon Petroleum as reflected in the already mentioned downward estimate revisions.
Investors should also note that the requirement of policies to reformulate fuel and lower emission from refinery operations makes the industry a highly regulated one. As a result, companies like Marathon Petroleum are often forced to divert cash flows to ensure regulatory compliance, which can adversely impact profitability.
MARATHON PETROL Price and Consensus
MARATHON PETROL Price and Consensus | MARATHON PETROL Quote
Stocks to Consider
Better-ranked players in the oil refining and marketing sector include Murphy USA Inc. (MUSA - Free Report) , World Fuel Services Corp and Galp Energia, SGPS, S.A (GLPEY - Free Report) . Murphy USA and World Fuel Services sport a Zacks Rank #1 (Strong Buy) while Galp Energia carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>