Marathon Petroleum (MPC) Stock Sinks As Market Gains: What You Should Know

·3-min read

Marathon Petroleum (MPC) closed at $124.70 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 0.56% gain on the day. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.

Coming into today, shares of the refiner had gained 0.5% in the past month. In that same time, the Oils-Energy sector lost 8%, while the S&P 500 lost 1.48%.

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. On that day, Marathon Petroleum is projected to report earnings of $5.27 per share, which would represent year-over-year growth of 253.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.03 billion, down 19.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.88 per share and revenue of $130.11 billion, which would represent changes of -24.01% and -27.7%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.66% higher within the past month. Marathon Petroleum is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 6.35. This valuation marks a premium compared to its industry's average Forward P/E of 6.32.

Investors should also note that MPC has a PEG ratio of 0.22 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 0.66 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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