Marathon Petroleum (MPC) closed the most recent trading day at $60.38, moving -0.15% from the previous trading session. This change lagged the S&P 500’s daily of 0%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today’s trading, shares of the refiner had lost 1.63% over the past month. This has lagged the Oils-Energy sector’s gain of 6.19% and the S&P 500’s gain of 3.37% in that time.
Investors will be hoping for strength from MPC as it approaches its next earnings release, which is expected to be January 29, 2020. On that day, MPC is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 54.36%. Our most recent consensus estimate is calling for quarterly revenue of $29.80 billion, down 8.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.38 per share and revenue of $122.35 billion. These totals would mark changes of -35.4% and +26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MPC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. The Zacks Consensus EPS estimate has moved 1.55% higher within the past month. MPC is currently a Zacks Rank #2 (Buy).
Digging into valuation, MPC currently has a Forward P/E ratio of 13.82. This valuation marks a discount compared to its industry’s average Forward P/E of 19.96.
We can also see that MPC currently has a PEG ratio of 1.14. 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 2.38 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 78, putting it in the top 31% 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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