Findlay, Ohio-based Marathon Petroleum Corporation (MPC) operates as an integrated downstream energy company. With a market cap of $63.4 billion, Marathon Petroleum operates through Refining & Marketing and Midstream segments.
The energy giant has underperformed the broader market over the past year. Despite rallying 23.7% over the past 52 weeks, MPC has lagged behind the S&P 500 Index’s ($SPX) 28.3% returns during the same time frame. However, in 2024, MPC is up 20.6%, outperforming SPX’s 17.6% gains on a YTD basis.
Narrowing the focus, MPC has outperformed the Vaneck Oil Refiners ETF’s (CRAK) 7.9% gains over the past 52 weeks and 4.8% returns on a YTD basis.
Shares of Marathon Petroleum surged 5.5% following the release of its Q2 earnings on Aug. 6. The company's total revenues grew 4.2% annually to $38.4 billion exceeding Wall Street’s expectations by 7.4%. Although its EPS declined 22.6% year over year to $4.12, it surpassed the consensus estimates by 35.5%. The decline in profitability was primarily due to a 6.9% increase in the cost of revenues and a 16.9% rise in selling, general, & admin expenses compared to the year-ago quarter.
For the current fiscal year, ending in December, analysts expect Marathon Petroleum to report an EPS decline of 38.9% year over year to $14.44. The company has a history of exceeding Wall Street’s EPS projections in its quarterly earnings reports.
Among the 16 analysts covering the MPC stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings and five “Holds.”
This configuration is slightly more bullish than a month ago, with 10 analysts recommending a “Strong Buy.”
On Aug. 7, TD Cowen analyst Jason Gabelman maintained a “Buy” rating with a price target of $190.
MPC’s mean price target of $195.75 represents a premium of 9.4% from current price levels. The Street-high target of $232 indicates a potential upside of 29.7%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
