U.S. markets closed
  • S&P Futures

    4,135.75
    -11.00 (-0.27%)
     
  • Dow Futures

    32,694.00
    -63.00 (-0.19%)
     
  • Nasdaq Futures

    13,191.00
    -37.75 (-0.29%)
     
  • Russell 2000 Futures

    1,917.10
    -4.70 (-0.24%)
     
  • Crude Oil

    88.21
    -0.80 (-0.90%)
     
  • Gold

    1,790.50
    -0.70 (-0.04%)
     
  • Silver

    19.76
    -0.08 (-0.39%)
     
  • EUR/USD

    1.0173
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    2.8400
    +0.1640 (+6.13%)
     
  • Vix

    21.15
    -0.29 (-1.35%)
     
  • GBP/USD

    1.2059
    -0.0012 (-0.10%)
     
  • USD/JPY

    135.1360
    +0.1660 (+0.12%)
     
  • BTC-USD

    23,258.29
    +321.06 (+1.40%)
     
  • CMC Crypto 200

    541.40
    +6.17 (+1.15%)
     
  • FTSE 100

    7,439.74
    -8.32 (-0.11%)
     
  • Nikkei 225

    28,168.67
    -7.20 (-0.03%)
     

Here's Why Marathon Petroleum (MPC) is a Strong Value Stock

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Marathon Petroleum (MPC)

Findlay, OH-based Marathon Petroleum Corporation is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.  In October 2018, Marathon Oil completed the acquisition of its rival Andeavor in a $23.3 billion deal, thereby becoming the nationwide largest refining company by market capitalization. The deal also made the company the largest U.S. refiner and the fifth largest in the world by capacity.

MPC is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 6.7X for the current fiscal year compared to the Oil and Gas - Refining and Marketing industry's P/E of 9X. Additionally, MPC has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 11.2X. Value investors should also note MPC's Price/Sales ratio of 0.4X.

Many value investors pay close attention to a company's earnings as well. For MPC, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $6.59 to $13.72 per share for 2022. Per share MPC boasts an average earnings surprise of 65%.

MPC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research