Marathon Petroleum (MPC) ended the recent trading session at $230.09, demonstrating a +1.48% change from the preceding day’s closing price. The stock’s performance was ahead of the S&P 500’s daily loss of 1.52%. Meanwhile, the Dow experienced a drop of 1.56%, and the technology-dominated Nasdaq saw a decrease of 1.78%.
Shares of the refiner have appreciated by 8.68% over the course of the past month, outperforming the Oils-Energy sector’s gain of 5.1%, and the S&P 500’s loss of 2.25%.
The investment community will be closely monitoring the performance of Marathon Petroleum in its forthcoming earnings report. The company is forecasted to report an EPS of $1.53, showcasing a 737.5% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.93 billion, down 9.16% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.45 per share and a revenue of $121.47 billion, indicating changes of +35.05% and -10.17%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Marathon Petroleum. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 13.44% higher. Marathon Petroleum presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 15.69. This indicates a discount in contrast to its industry’s Forward P/E of 15.77.
Investors should also note that MPC has a PEG ratio of 1.35 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. MPC’s industry had an average PEG ratio of 2.7 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 159, this industry ranks in the bottom 36% of all industries, numbering over 250.