In the latest trading session, Marathon Petroleum (MPC) closed at $53.92, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq added 0.07%.
Prior to today's trading, shares of the refiner had gained 13.83% over the past month. This has outpaced the Oils-Energy sector's gain of 8.19% and the S&P 500's gain of 4.25% 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. The company is expected to report EPS of $1.50, down 11.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.83 billion, up 50.58% from the year-ago period.
MPC's full-year Zacks Consensus Estimates are calling for earnings of $3.93 per share and revenue of $124.98 billion. These results would represent year-over-year changes of -42.04% and +28.71%, respectively.
Investors should also note any recent changes to analyst estimates for MPC. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 10.67% lower within the past month. MPC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MPC currently has a Forward P/E ratio of 13.67. For comparison, its industry has an average Forward P/E of 16.81, which means MPC is trading at a discount to the group.
Investors should also note that MPC has a PEG ratio of 1.37 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 was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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