Valued at a market cap of $74.5 billion, Marathon Petroleum Corporation (MPC) is an integrated downstream energy company based in Findlay, Ohio. It processes crude oil and other feedstocks across a robust nationwide refinery system to produce essential transportation fuels.
This energy company has notably outperformed the broader market over the past 52 weeks. Shares of MPC have soared 54.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.6%. Moreover, on a YTD basis, the stock is up 56.8%, compared to SPX’s 8.1% rise.
Looking closer, MPC has also outpaced the State Street Energy Select Sector SPDR ETF (XLE), which rose 38.9% over the past 52 weeks and 33% on a YTD basis.
On May 5, MPC shares soared 3.2% after delivering impressive Q1 earnings results. The performance highlighted the resilience of its integrated business model and disciplined capital allocation strategy. Its adjusted EBITDA of $2.8 billion increased 39.9% year-over-year, while its adjusted EPS of $1.65 rebounded from a loss of $0.24 per share in the year-ago quarter, handily topping analyst estimates.
For the current fiscal year, ending in December, analysts expect MPC’s EPS to grow 117.3% year over year to $29.67. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 18 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on nine “Strong Buy,” three "Moderate Buy,” and six “Hold” ratings.
The configuration is more bullish than two months ago, with eight analysts suggesting a “Strong Buy” rating.
On May 7, The Goldman Sachs Group, Inc. (GS) analyst Neil Mehta maintained a “Buy” rating on MPC and raised its price target to $291, indicating a 14.1% potential upside from the current levels.
The mean price target of $262.41 suggests a 2.9% premium to its current price levels, while its Street-high price target of $335 implies a 31.4% potential upside.
