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Marathon Petroleum (MPC) Stock Sinks As Market Gains: What You Should Know

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Marathon Petroleum (MPC - Free Report) ended the recent trading session at $152.88, demonstrating a -0.57% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.

The the stock of refiner has fallen by 4.89% in the past month, leading the Oils-Energy sector's loss of 11.32% and undershooting the S&P 500's gain of 1.47%.

The investment community will be paying close attention to the earnings performance of Marathon Petroleum in its upcoming release. The company is slated to reveal its earnings on November 5, 2024. It is anticipated that the company will report an EPS of $0.97, marking an 88.08% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $31.58 billion, indicating a 24.07% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $134.66 billion, which would represent changes of -59.88% and -10.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 17.47% decrease. Marathon Petroleum currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Marathon Petroleum is presently being traded at a Forward P/E ratio of 16.22. This indicates a discount in contrast to its industry's Forward P/E of 16.69.

We can additionally observe that MPC currently boasts a PEG ratio of 2.7. 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. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 2.7.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 237, positioning it in the bottom 6% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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