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Marathon Petroleum, traded under the symbol MPC-N, is currently facing pressure from market sentiments influenced by political statements aimed at oil prices. The recent comments from Trump highlight a desire to lower oil prices to counter inflationary pressures stemming from tariffs. This has resulted in a selling trend among investors, who are wary of the potential impact on oil shares. As a result, the stock's performance has been closely associated with broader oil market dynamics, investor sentiment, and reactions to geopolitical developments. The general outlook suggests that investor confidence may remain shaky as long as oil prices continue to fluctuate in response to such external factors.
MPC is now trading at 8.2x times' Forward P/E. In the most recent quarter, MPC’s revenue declined 32% to $36.8B, beating estimates of $33.9B and adjusted EBITDA came down from $9B to around $4.5B; the decline was largely expected after high oil prices in 2022. The balance sheet is strong, with net debt of $17.1B and net debt/EBITDA of around 0.8x. Given the record cash flow generated from the oil tailwind in the last few years, the company has implemented one of the more aggressive share-repurchasing programs. Going forward, MPC’s fundamentals and share price would be heavily affected by the movement in oil prices. However, we think MPC just had a solid quarter, and still looks cheap, while MPC is fully committed to buying back more shares. We would be comfortable buying in the context of the sector.
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From a PE valuation standpoint, refiners tend to work together. You see spreads widen or narrow off the raw product of oil, into the different commercial products. This company has been a good performer over the years. Not having great visibility into the cycle and to the spreads, he would probably pass on making this a core holding.
Marathon Petroleum is a American stock, trading under the symbol MPC-N on the New York Stock Exchange (MPC). It is usually referred to as NYSE:MPC or MPC-N
In the last year, 1 stock analyst published opinions about MPC-N. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Marathon Petroleum.
Marathon Petroleum was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Marathon Petroleum.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered Marathon Petroleum In the last year. It is a trending stock that is worth watching.
On 2025-04-24, Marathon Petroleum (MPC-N) stock closed at a price of $137.54.
Trump wants the oil price to come down to offset any inflation from tariffs. This is why investors have been selling oil shares.