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Marathon Petroleum (MPC) Dips More Than Broader Market: What You Should Know

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The latest trading session saw Marathon Petroleum (MPC - Free Report) ending at $151.61, denoting a -1.75% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Heading into today, shares of the refiner had gained 13.97% over the past month, outpacing the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52% in that time.

Market participants will be closely following the financial results of Marathon Petroleum in its upcoming release. The company plans to announce its earnings on February 4, 2025. The company is forecasted to report an EPS of $0.37, showcasing a 90.7% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $30.72 billion, reflecting a 16.56% fall from the equivalent quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Marathon Petroleum. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.61% lower. As of now, Marathon Petroleum holds a Zacks Rank of #3 (Hold).

In the context of valuation, Marathon Petroleum is at present trading with a Forward P/E ratio of 18.05. For comparison, its industry has an average Forward P/E of 16.98, which means Marathon Petroleum is trading at a premium to the group.

Investors should also note that MPC has a PEG ratio of 3.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing industry held an average PEG ratio of 2.93.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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