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Marathon Petroleum (MPC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Marathon Petroleum (MPC) closed at $59.23 in the latest trading session, marking a -1.9% move from the prior day. This change lagged the S&P 500's 1.79% loss on the day. At the same time, the Dow lost 1.86%, and the tech-heavy Nasdaq lost 1.56%.

Heading into today, shares of the refiner had gained 21.64% over the past month, outpacing the Oils-Energy sector's gain of 3.09% and the S&P 500's gain of 0.72% in that time.

MPC will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2019. In that report, analysts expect MPC to post earnings of $1.50 per share. This would mark a year-over-year decline of 11.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.84 billion, up 50.6% from the year-ago period.

MPC's full-year Zacks Consensus Estimates are calling for earnings of $3.89 per share and revenue of $124.81 billion. These results would represent year-over-year changes of -42.63% and +28.54%, respectively.

Any recent changes to analyst estimates for MPC should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.3% lower. MPC is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MPC is currently trading at a Forward P/E ratio of 15.53. This represents a discount compared to its industry's average Forward P/E of 17.53.

Investors should also note that MPC has a PEG ratio of 1.56 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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