Based in Findlay, Ohio, Marathon Petroleum Corporation (MPC) is a leading independent downstream energy company with a market cap of $60.8 billion. The company specializes in refining, transporting, and marketing petroleum products across the United States.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Marathon Petroleum fits this criterion perfectly. MPC is uniquely positioned in the market with the largest U.S. refining system, a comprehensive retail marketing network, and significant midstream assets through MPLX LP.
However, the refiner has fallen 21% from its 52-week high of $221.11, recorded in April. Marathon Petroleum's shares have declined by 11.6% over the past three months, lagging behind the broader Nasdaq Composite's ($NASX) 9.4% gain during the same period.
Longer term, MPC stock has gained 17.8% on a YTD basis, which slightly lags behind NASX's nearly 19.3% increase over the same period. However, MPC has surged 57.6% over the past 52 weeks, outpacing the NASX's 31.1% gains.
Since July of last year, MPC has consistently traded above its 200-day moving average but has remained below its 50-day moving average since the beginning of May this year.
Marathon Petroleum has outperformed over the past year due to strong refining margins and effective management during supply disruptions and high demand for refined products. Yet, the stock dipped 9.4% after its Q1 earnings release on Apr. 30, primarily due to higher-than-expected turnaround expenses, indicating operational challenges during refinery maintenance. Plus, despite beating profit estimates, the decline in refining and marketing margins raised concerns among investors about future profitability amid fluctuating fuel supplies and operational costs.
In contrast, rival Phillips 66 (PSX) is underperforming MPC. PSX shares have gained 46.8% over the past 52 weeks and only 3.1% on a YTD basis, highlighting MPC's relative strength in comparison.
Despite the recent underperformance, considering the stock's strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 15 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $207.14 is a premium of 20.1% to current levels.
On the date of publication, Sohini Mondal 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.
