Marathon Petroleum Corporation (MPC), headquartered in Findlay, Ohio, is a leading integrated downstream energy company specializing in refining, marketing, and transportation of petroleum products. With a market cap of $55.88 billion, Marathon competes with other major energy companies like Valero Energy (VLO), driving advancements in fuel production and distribution.
Companies valued at $10 billion or more are generally classified as "large-cap stocks," and Marathon Petroleum fits well into this category. MPC has established a strong market position through its extensive refining, marketing, and transportation operations, providing a comprehensive range of energy solutions.
MPC shares are trading 28.3% below their 52-week high of $221.11, which they hit on Apr. 5. Also, the stock has declined 9.1% over the past three months, significantly underperforming the Dow Jones Industrial Average Index’s ($DOWI) 5.5% returns over the same time frame.
In the longer term, MPC is up 6.9% on a YTD basis, and the shares have gained 3% over the past 52 weeks. The Dow has gained 8.4% in 2024 and 17.9% over the past year.
To confirm its bearish trend, MPC has been trading below its 200-day moving average and 50-day moving average since early September.
Shares of Marathon Petroleum surged 5.5% following the release of its Q2 earnings on Aug. 6. The company reported a profit of $1.52 billion, or $4.12 per share, surpassing Wall Street expectations of $3.04 per share. The refiner posted revenue of $38.36 billion.
Highlighting the contrast in performance, rival VLO has underperformed MPC and the border index, with a 7.5% decline over the 52 weeks.
Despite MPC's recent underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 16 analysts in coverage. The mean price target is $193.50, which suggests a premium of 22% to its current levels.
On the date of publication, Rashmi Kumari 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.
