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Marathon Petroleum (MPC) is a Top-Ranked Value Stock: Should You Buy?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Marathon Petroleum (MPC)

Findlay, OH-based Marathon Petroleum Corporation is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.  In October 2018, Marathon Oil completed the acquisition of its rival Andeavor in a $23.3 billion deal, thereby becoming the nationwide largest refining company by market capitalization. The deal also made the company the largest U.S. refiner and the fifth largest in the world by capacity.

MPC is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 5.1X for the current fiscal year compared to the Oil and Gas - Refining and Marketing industry's P/E of 6.6X. Additionally, MPC has a PEG Ratio of 0.2 and a Price/Cash Flow ratio of 12.9X. Value investors should also note MPC's Price/Sales ratio of 0.3X.

Many value investors pay close attention to a company's earnings as well. For MPC, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $7.00 to $20.72 per share for 2022. Per share MPC boasts an average earnings surprise of 56.7%.

Investors should take the time to consider MPC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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