The Findlay, OH-based company is engaged in the petroleum product refining, marketing, retail and transportation businesses.
"MPC boasts a diverse portfolio of premier midstream & downstream energy assets, including its controlling ownership in MPLX, a largecap diversified MLP (master limited partnership)," the firm wrote in an analyst note.
While recent fundamental factors tethered to Marathon's refining and marketing (R&M) segment prompted shares to underperform, Jefferies believes its diversified business model presents a favorable risk and reward skew.
Additionally, the company offers exposure to several facets of the energy value chain as its diverse portfolio links growing U.S. hydrocarbon production to end-use markets including refining, marketing and distribution.
Shares of Marathon Petroleum were gaining late Tuesday afternoon as oil prices rebounded.
Crude oil (WTI) was up 1.37% to $48.06 per barrel and Brent crude was increasing 1.55% to $49.92 per barrel this afternoon.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MPC