Marathon Petroleum (MPC - Free Report) closed the most recent trading day at $48.71, moving +1.56% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the refiner had lost 9.27% in the past month. In that same time, the Oils-Energy sector lost 2.88%, while the S&P 500 gained 2.08%.
MPC will be looking to display strength as it nears its next earnings release. In that report, analysts expect MPC to post earnings of $1.69 per share. This would mark a year-over-year decline of 25.55%. Our most recent consensus estimate is calling for quarterly revenue of $31.01 billion, up 38.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.67 per share and revenue of $115.83 billion, which would represent changes of -31.12% and +19.28%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MPC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.28% lower. MPC is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MPC is holding a Forward P/E ratio of 10.27. Its industry sports an average Forward P/E of 12.65, so we one might conclude that MPC is trading at a discount comparatively.
Also, we should mention that MPC has a PEG ratio of 1.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.