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Marathon Petroleum (MPC) Gains But Lags Market: What You Should Know

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Marathon Petroleum (MPC - Free Report) closed at $20.30 in the latest trading session, marking a +0.05% move from the prior day. This move lagged the S&P 500's daily gain of 6%. Meanwhile, the Dow gained 5.2%, and the Nasdaq, a tech-heavy index, added 6.23%.

Coming into today, shares of the refiner had lost 65.22% in the past month. In that same time, the Oils-Energy sector lost 47.86%, while the S&P 500 lost 29.18%.

Wall Street will be looking for positivity from MPC as it approaches its next earnings report date. This is expected to be April 30, 2020. On that day, MPC is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 644.44%. Our most recent consensus estimate is calling for quarterly revenue of $29.49 billion, up 3.06% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.73 per share and revenue of $133.30 billion, which would represent changes of +15.99% and +6.75%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MPC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 15.29% lower. MPC is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, MPC is holding a Forward P/E ratio of 3.54. Its industry sports an average Forward P/E of 5.63, so we one might conclude that MPC is trading at a discount comparatively.

Investors should also note that MPC has a PEG ratio of 0.42 right now. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.

To follow MPC in the coming trading sessions, be sure to utilize Zacks.com.


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