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Is Marathon Petroleum (MPC) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Marathon Petroleum (MPC - Free Report) is a stock many investors are watching right now. MPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

MPC is also sporting a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MPC's industry currently sports an average PEG of 1.05. MPC's PEG has been as high as 3.88 and as low as 0.53, with a median of 0.90, all within the past year.

Investors should also recognize that MPC has a P/B ratio of 1.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.67. Over the past year, MPC's P/B has been as high as 1.61 and as low as 0.91, with a median of 1.19.

Finally, we should also recognize that MPC has a P/CF ratio of 4.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.95. MPC's P/CF has been as high as 16.69 and as low as 2.96, with a median of 3.48, all within the past year.

Investors could also keep in mind PBF Energy (PBF - Free Report) , an Oil and Gas - Refining and Marketing stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Shares of PBF Energy are currently trading at a forward earnings multiple of 10.50 and a PEG ratio of -0.17 compared to its industry's P/E and PEG ratios of 13.17 and 1.05, respectively.

PBF Energy sports a P/B ratio of 1.42 as well; this compares to its industry's price-to-book ratio of 1.67. In the past 52 weeks, PBF's P/B has been as high as 1.42, as low as 0.40, with a median of 0.77.

These are just a handful of the figures considered in Marathon Petroleum and PBF Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MPC and PBF is an impressive value stock right now.


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