Marathon Petroleum (MPC) closed the most recent trading day at $107.58, moving -0.13% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the refiner had gained 9.4% in the past month. In that same time, the Oils-Energy sector lost 0.9%, while the S&P 500 lost 3.29%.
Wall Street will be looking for positivity from Marathon Petroleum as it approaches its next earnings report date. This is expected to be November 1, 2022. In that report, analysts expect Marathon Petroleum to post earnings of $6.52 per share. This would mark year-over-year growth of 793.15%. Our most recent consensus estimate is calling for quarterly revenue of $37.16 billion, up 13.96% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.77 per share and revenue of $166.33 billion, which would represent changes of +788.57% and +37.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marathon Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.83% higher. Marathon Petroleum is currently a Zacks Rank #2 (Buy).
Digging into valuation, Marathon Petroleum currently has a Forward P/E ratio of 4.95. Its industry sports an average Forward P/E of 5.58, so we one might conclude that Marathon Petroleum is trading at a discount comparatively.
Investors should also note that MPC has a PEG ratio of 0.22 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 0.46 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 6, which puts it in the top 3% 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.
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