Valued at a market cap of $74.5 billion, Marathon Petroleum Company (MPC) is an built-in downstream power firm based mostly in Findlay, Ohio. It processes crude oil and different feedstocks throughout a sturdy nationwide refinery system to provide important transportation fuels.
This power firm has notably outperformed the broader market over the previous 52 weeks. Shares of MPC have soared 54.3% over this time-frame, whereas the broader S&P 500 Index ($SPX) has gained 26.6%. Furthermore, on a YTD foundation, the inventory is up 56.8%, in comparison with SPX’s 8.1% rise.
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Wanting nearer, MPC has additionally outpaced the State Road Vitality Choose Sector SPDR ETF (XLE), which rose 38.9% over the previous 52 weeks and 33% on a YTD foundation.
On Could 5, MPC shares soared 3.2% after delivering spectacular Q1 earnings outcomes. The efficiency highlighted the resilience of its built-in enterprise mannequin and disciplined capital allocation technique. Its adjusted EBITDA of $2.8 billion elevated 39.9% year-over-year, whereas its adjusted EPS of $1.65 rebounded from a lack of $0.24 per share within the year-ago quarter, handily topping analyst estimates.
For the present fiscal 12 months, ending in December, analysts count on MPC’s EPS to develop 117.3% 12 months over 12 months to $29.67. The corporate’s earnings shock historical past is blended. It topped the consensus estimates in three of the final 4 quarters, whereas lacking on one other event.
Among the many 18 analysts overlaying the inventory, the consensus score is a “Reasonable Purchase,” which is predicated on 9 “Sturdy Purchase,” three “Reasonable Purchase,” and 6 “Maintain” rankings.
The configuration is extra bullish than two months in the past, with eight analysts suggesting a “Sturdy Purchase” score.
On Could 7, The Goldman Sachs Group, Inc. (GS) analyst Neil Mehta maintained a “Purchase” score on MPC and raised its worth goal to $291, indicating a 14.1% potential upside from the present ranges.
The imply worth goal of $262.41 suggests a 2.9% premium to its present worth ranges, whereas its Road-high worth goal of $335 implies a 31.4% potential upside.
On the date of publication, Neharika Jain didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com
