In the latest trading session, Marathon Petroleum (MPC) closed at $108.85, marking a -0.14% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the refiner had lost 5.92% over the past month. This has lagged the Oils-Energy sector's loss of 5.74% and the S&P 500's gain of 3.49% in that time.
Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. The company is expected to report EPS of $6.09, up 368.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.66 billion, down 8.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.50 per share and revenue of $171 billion. These totals would mark changes of +940.82% and +41.41%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Marathon Petroleum. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.83% higher. Marathon Petroleum is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 4.27. Its industry sports an average Forward P/E of 5.08, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
It is also worth noting that MPC currently has a PEG ratio of 0.18. 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. The Oil and Gas - Refining and Marketing industry currently had an average PEG ratio of 0.45 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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