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Murphy USA (MUSA) Gains But Lags Market: What You Should Know

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Murphy USA (MUSA - Free Report) closed the most recent trading day at $190.68, moving +1.4% from the previous trading session. This change lagged the S&P 500's 2.24% gain on the day. At the same time, the Dow added 1.55%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the gasoline station operator had gained 4.57% over the past month. This has outpaced the Oils-Energy sector's gain of 1.6% and the S&P 500's loss of 4.46% in that time.

Murphy USA will be looking to display strength as it nears its next earnings release. In that report, analysts expect Murphy USA to post earnings of $2.30 per share. This would mark year-over-year growth of 14.43%. Meanwhile, our latest consensus estimate is calling for revenue of $4.44 billion, up 25.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.42 per share and revenue of $19.14 billion. These totals would mark changes of -23.46% and +10.26%, respectively, from last year.

Any recent changes to analyst estimates for Murphy USA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.66% higher. Murphy USA currently has a Zacks Rank of #3 (Hold).

Investors should also note Murphy USA's current valuation metrics, including its Forward P/E ratio of 16.47. Its industry sports an average Forward P/E of 15.19, so we one might conclude that Murphy USA is trading at a premium comparatively.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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