MPC: Energy Rotation Supports the Uptrend

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MPC: Energy Rotation Supports the UptrendMarathon Petroleum CorporationBATS:MPCfinvestnomicsMPC is showing buying interest as funds tilt toward the Energy sector following the resumption of hostilities between Iran and the U.S. The stock remains in an uptrend, trading above both the 20- and 50-day moving averages. Marathon Petroleum Corp. is a $105bn market-cap company engaged in the refining, marketing, and transportation of petroleum products. It operates through its Refining and Marketing and Midstream segments. The Refining and Marketing segment focuses on refining crude oil and other feedstocks, purchasing ethanol and refined products for resale, and distributing refined products. The Midstream segment provides transportation, storage, distribution, and marketing services for crude oil and refined products. MPC is a narrow economic moat company. Revenue has grown in two of the last three quarters, while EPS has increased in each of the last three quarters, with the latest growth rates at 53% and 349%, respectively. Operating and net margins are 13% and 10%, while ROE and ROIC stand at 47% and 18%. Current and debt-to-equity ratios are 1.3x and 1.8x, respectively. Revenue and EPS are expected to continue growing over the next three quarters, with next-quarter growth forecast at 34% and 524%, respectively. However, the analyst average price target of $337.12 implies approximately 10% downside from the current price.