Marathon Petroleum (MPC) Stock Sinks As Market Gains: What You Should Know
Marathon Petroleum (MPC) closed at $126.15 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the refiner had gained 3.42% over the past month, outpacing the Oils-Energy sector's loss of 5.47% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. This is expected to be May 2, 2023. In that report, analysts expect Marathon Petroleum to post earnings of $5.27 per share. This would mark year-over-year growth of 253.69%. Our most recent consensus estimate is calling for quarterly revenue of $31.03 billion, down 19.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.88 per share and revenue of $130.11 billion. These totals would mark changes of -24.01% and -27.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Marathon Petroleum. 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. 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. The Zacks Consensus EPS estimate has moved 11.66% higher within the past month. Marathon Petroleum is currently a Zacks Rank #3 (Hold).
Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 6.39. For comparison, its industry has an average Forward P/E of 6.39, which means Marathon Petroleum is trading at a no noticeable deviation to the group.
Also, we should mention that MPC has a PEG ratio of 0.22. 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 0.66 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 60, putting it in the top 24% 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.
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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