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Marathon Petroleum (MPC) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Marathon Petroleum (MPC - Free Report) closed at $149.96, marking a -0.94% move from the previous day. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.25%.

The the stock of refiner has risen by 8.52% in the past month, leading the Oils-Energy sector's gain of 5.88% and the S&P 500's gain of 1.24%.

The investment community will be paying close attention to the earnings performance of Marathon Petroleum in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company is forecasted to report an EPS of $0.12, showcasing a 96.98% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $30.72 billion, indicating a 16.56% decrease compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.19% downward. Marathon Petroleum is currently a Zacks Rank #3 (Hold).

Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 17.25. This expresses a premium compared to the average Forward P/E of 16.83 of its industry.

One should further note that MPC currently holds a PEG ratio of 2.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MPC's industry had an average PEG ratio of 2.81 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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