In the latest trading session, Marathon Petroleum (MPC) closed at $65.47, marking a -1.19% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the refiner had gained 12.74% over the past month, outpacing the Oils-Energy sector's gain of 11.26% and the S&P 500's gain of 7.92% in that time.
Wall Street will be looking for positivity from MPC as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $1.98, up 88.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.19 billion, up 56.28% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MPC. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.91% 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 10.17. For comparison, its industry has an average Forward P/E of 11.49, which means MPC is trading at a discount to the group.
It is also worth noting that MPC currently has a PEG ratio of 0.67. 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 industry currently had an average PEG ratio of 1.07 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 76, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow MPC in the coming trading sessions, be sure to utilize Zacks.com.