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Marathon Petroleum (MPC) Dips More Than Broader Markets: What You Should Know

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Marathon Petroleum (MPC - Free Report) closed at $62.03 in the latest trading session, marking a -0.08% move from the prior day. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.12%.

Heading into today, shares of the refiner had lost 4.71% over the past month, lagging the Oils-Energy sector's gain of 2.08% and the S&P 500's gain of 2.24% in that time.

Investors will be hoping for strength from MPC as it approaches its next earnings release. In that report, analysts expect MPC to post earnings of $0.58 per share. This would mark year-over-year growth of 625%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.86 billion, up 88.9% from the year-ago period.

MPC's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $121.33 billion. These results would represent year-over-year changes of -7.67% and +24.95%, respectively.

It is also important to note the recent changes to analyst estimates for MPC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.94% lower within the past month. MPC is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MPC has a Forward P/E ratio of 9.92 right now. This represents a discount compared to its industry's average Forward P/E of 11.85.

Also, we should mention that MPC has a PEG ratio of 0.66. 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 1.22 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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