Marathon Petroleum (MPC) closed the last trading day at $111.36, down -1.34% from the previous trading session. That move was narrower than the S&P 500’s 2.38% daily loss. At the same time, the Dow Jones lost 1.94% and the tech-heavy Nasdaq lost 0.6%.
Going into today, shares of the refiner had gained 22.74% over the past month, outpacing the Oil & Energy sector’s gain of 10.37% and the S&P 500’s loss of 0.07% during this period.
Investors are hoping for Marathon Petroleum’s strength as it approaches its next earnings release. On that day, Marathon Petroleum is expected to report earnings of $4.70 per share, which would represent 601.49% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $31.41 billion, up 5.31% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $13.72 per share and revenue of $131.8 billion, which would represent variations of +460% and +8.99% , respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Marathon Petroleum. These revisions help show the ever-changing nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection has increased by 40.28%. Marathon Petroleum currently sports a Zacks ranking of #1 (Strong Buy).
Regarding its valuation, Marathon Petroleum holds a Forward P/E ratio of 8.23. Its industry sports an average Forward P/E of 10.3, so we can conclude that Marathon Petroleum is trading at a comparative discount.
Investors should also note that MPC has a PEG ratio of 0.41 at this time. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Oil & Gas Industry – Refining & Marketing currently had an average PEG ratio of 0.78 at yesterday’s close.
The Oil and Gas – Refining and Marketing industry is part of the Oil & Energy sector. This group has a Zacks industry ranking of 5, which places it in the top 2% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.