Marathon Petroleum’s Market Performance: An In-Depth Analysis
Marathon Petroleum Corporation (MPC), located in Findlay, Ohio, operates as a major player in the downstream energy sector. The company boasts a market capitalization of $48.5 billion, engaging in refining, supplying, marketing, and transporting petroleum products.
A Large-Cap Titan in the Energy Sector
Being classified as a “large-cap stock,” MPC has a market value well over $10 billion. This status reflects not only its size but also its significant influence and strong foothold in the oil and gas refining and marketing industry. MPC is actively working to reduce its carbon footprint by investing in greener technologies, while also emphasizing high-quality products and excellent customer service—efforts that support its competitive advantage.
Stock Performance: A Recent Decline
In recent months, MPC has faced challenges, slipping 31.7% from its recent high of $221.11, reached on April 5. Over the past three months, the company’s stock declined by 7.6%, underperforming the Energy Sector SPDR Fund’s (XLE) growth of 6% in the same period.
Year-to-Date Trends and Moving Averages
Looking at a longer time frame, MPC shares have seen a 1.8% increase year-to-date (YTD) and a 5.6% rise over the past 52 weeks. Despite these gains, they still lag behind XLE’s YTD performance of 7.7% and 9.8% over the last year.
Further confirming a bearish trend, MPC’s stock has traded below its 50-day and 200-day moving averages since late August, albeit with some ups and downs along the way.
Q3 Earnings Report: Disappointing Results
On November 5, MPC shares rose by over 3% following the release of its Q3 results. The company reported revenue of $35.4 billion, which was a drop of 14.9% year over year. Additionally, its adjusted earnings per share (EPS) plummeted 77% compared to the previous year, settling at $1.87.
In comparison, Phillips 66 (PSX), a competitor of MPC, experienced a 5.7% decline in its stock YTD, along with modest returns in the past year.
Analysts Weigh In on Future Prospects
Despite recent challenges, Wall Street analysts maintain a moderately positive outlook on MPC’s future. The stock holds a consensus “Moderate Buy” rating from 18 analysts, with a mean price target of $176.06. This indicates a potential upside of 16.5% from current prices.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
