Marathon Petroleum (MPC) closed the most recent trading day at $112.43, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Heading into today, shares of the refiner had gained 2.15% over the past month, lagging the Oils-Energy sector's gain of 2.66% and the S&P 500's gain of 3.44% in that time.
Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. The company is expected to report EPS of $4.75, down 55.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.9 billion, down 41.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.23 per share and revenue of $135.84 billion, which would represent changes of -26.49% and -24.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Marathon Petroleum. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.35% lower. Marathon Petroleum currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 5.93. Its industry sports an average Forward P/E of 7, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
Meanwhile, MPC's PEG ratio is currently 0.99. 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 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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