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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Marathon Petroleum (MPC - Free Report) is a stock many investors are watching right now. MPC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
MPC is also sporting a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MPC's PEG compares to its industry's average PEG of 0.68. Within the past year, MPC's PEG has been as high as 1.53 and as low as 0.25, with a median of 0.58.
Investors should also recognize that MPC has a P/B ratio of 1.71. The P/B is a method of comparing a stock's market value to 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 2. Over the past 12 months, MPC's P/B has been as high as 2.03 and as low as 1.06, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MPC has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.33.
Finally, we should also recognize that MPC has a P/CF ratio of 3.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 5.22. Within the past 12 months, MPC's P/CF has been as high as 4.93 and as low as 2.96, with a median of 3.61.
PBF Energy (PBF - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PBF is a # 1 (Strong Buy) stock with a Value grade of A.
PBF Energy also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 2. Over the past year, its P/B ratio has been as high as 2.09, as low as 0.58, with a median of 1.01.
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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Is Marathon Petroleum (MPC) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Marathon Petroleum (MPC - Free Report) is a stock many investors are watching right now. MPC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
MPC is also sporting a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MPC's PEG compares to its industry's average PEG of 0.68. Within the past year, MPC's PEG has been as high as 1.53 and as low as 0.25, with a median of 0.58.
Investors should also recognize that MPC has a P/B ratio of 1.71. The P/B is a method of comparing a stock's market value to 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 2. Over the past 12 months, MPC's P/B has been as high as 2.03 and as low as 1.06, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MPC has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.33.
Finally, we should also recognize that MPC has a P/CF ratio of 3.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 5.22. Within the past 12 months, MPC's P/CF has been as high as 4.93 and as low as 2.96, with a median of 3.61.
PBF Energy (PBF - Free Report) may be another strong Oil and Gas - Refining and Marketing stock to add to your shortlist. PBF is a # 1 (Strong Buy) stock with a Value grade of A.
PBF Energy also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 2. Over the past year, its P/B ratio has been as high as 2.09, as low as 0.58, with a median of 1.01.
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.