Marathon Petroleum Corporation (MPC), headquartered in Findlay, Ohio, functions as an integrated downstream energy company. Valued at $48.5 billion by market cap, the company refines, supplies, markets, and transports petroleum products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MPC definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the oil & gas refining & marketing industry. MPC's commitment towards lowering its carbon footprint by investing in greener technology and its emphasis on providing high-quality products and top-notch customer service, has enhanced its efficiency and customer satisfaction, strengthening its competitive edge.
Despite its notable strength, MPC slipped 31.7% from its 52-week high of $221.11, achieved on Apr. 5. Shares of MPC stock fell 7.6% over the past three months, considerably underperforming the Energy Sector SPDR Fund’s (XLE) 6% gains during the same time frame.
In the longer term, shares of MPC rose 1.8% on a YTD basis and climbed 5.6% over the past 52 weeks, underperforming XLE’s YTD gains of 7.7% and 9.8% returns over the last year.
To confirm the bearish trend, MPC has traded below its 50-day and 200-day moving averages since late August, with some fluctuations.
On Nov. 5, MPC shares closed up more than 3% after reporting its Q3 results. The company’s revenue stood at $35.4 billion, down 14.9% year over year. Its adjusted EPS saw a massive 77% decline year over year to $1.87.
MPC’s rival, Phillips 66 (PSX) shares lagged behind the stock, with a 5.7% dip on a YTD basis and marginal returns over the past 52 weeks.
Wall Street analysts are moderately bullish on MPC’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $176.06 suggests a potential upside of 16.5% from current price levels.
