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Are Investors Undervaluing Marathon Petroleum (MPC) 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, 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
MPC is also sporting a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's industry has an average PEG of 0.56 right now. Within the past year, MPC's PEG has been as high as 1.23 and as low as 0.19, with a median of 0.32.
We should also highlight that MPC has a P/B ratio of 1.70. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.82. Over the past year, MPC's P/B has been as high as 2.03 and as low as 1.21, with a median of 1.59.
Finally, our model also underscores that MPC has a P/CF ratio of 3.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 4.15. Within the past 12 months, MPC's P/CF has been as high as 4.93 and as low as 2.91, with a median of 3.70.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Valero Energy (VLO - Free Report) . VLO is a # 1 (Strong Buy) stock with a Value score of A.
Valero Energy is currently trading with a Forward P/E ratio of 5.62 while its PEG ratio sits at 0.94. Both of the company's metrics compare favorably to its industry's average P/E of 5.64 and average PEG ratio of 0.56.
Over the past year, VLO's P/E has been as high as 12.62, as low as 4.41, with a median of 6.39; its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 0.32 during the same time period.
Additionally, Valero Energy has a P/B ratio of 1.87 while its industry's price-to-book ratio sits at 1.82. For VLO, this valuation metric has been as high as 2.90, as low as 1.70, with a median of 2.01 over the past year.
These are just a handful of the figures considered in Marathon Petroleum and Valero 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 VLO is an impressive value stock right now.
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Are Investors Undervaluing Marathon Petroleum (MPC) Right Now?
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, 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Marathon Petroleum (MPC - Free Report) . MPC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
MPC is also sporting a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MPC's industry has an average PEG of 0.56 right now. Within the past year, MPC's PEG has been as high as 1.23 and as low as 0.19, with a median of 0.32.
We should also highlight that MPC has a P/B ratio of 1.70. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.82. Over the past year, MPC's P/B has been as high as 2.03 and as low as 1.21, with a median of 1.59.
Finally, our model also underscores that MPC has a P/CF ratio of 3.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MPC's current P/CF looks attractive when compared to its industry's average P/CF of 4.15. Within the past 12 months, MPC's P/CF has been as high as 4.93 and as low as 2.91, with a median of 3.70.
If you're looking for another solid Oil and Gas - Refining and Marketing value stock, take a look at Valero Energy (VLO - Free Report) . VLO is a # 1 (Strong Buy) stock with a Value score of A.
Valero Energy is currently trading with a Forward P/E ratio of 5.62 while its PEG ratio sits at 0.94. Both of the company's metrics compare favorably to its industry's average P/E of 5.64 and average PEG ratio of 0.56.
Over the past year, VLO's P/E has been as high as 12.62, as low as 4.41, with a median of 6.39; its PEG ratio has been as high as 2.10, as low as 0.73, with a median of 0.32 during the same time period.
Additionally, Valero Energy has a P/B ratio of 1.87 while its industry's price-to-book ratio sits at 1.82. For VLO, this valuation metric has been as high as 2.90, as low as 1.70, with a median of 2.01 over the past year.
These are just a handful of the figures considered in Marathon Petroleum and Valero 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 VLO is an impressive value stock right now.