In the latest trading session, Marathon Petroleum (MPC) closed at $99.94, marking a -0.07% move from the previous day. This change lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the refiner had gained 2.61% over the past month, lagging the Oils-Energy sector's gain of 4.37% and outpacing the S&P 500's loss of 1.14% in that time.
Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. In that report, analysts expect Marathon Petroleum to post earnings of $6.41 per share. This would mark year-over-year growth of 778.08%. Our most recent consensus estimate is calling for quarterly revenue of $37.14 billion, up 13.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.11 per share and revenue of $166.29 billion. These totals would mark changes of +761.63% and +37.51%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Marathon Petroleum. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Marathon Petroleum is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Marathon Petroleum is holding a Forward P/E ratio of 4.74. For comparison, its industry has an average Forward P/E of 5.7, which means Marathon Petroleum is trading at a discount to the group.
Investors should also note that MPC has a PEG ratio of 0.21 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.44 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 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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