Trade-Ideas LLC identified

Marathon Petroleum

(

MPC

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Marathon Petroleum as such a stock due to the following factors:

  • MPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $284.7 million.
  • MPC has traded 2.7 million shares today.
  • MPC is up 3.1% today.
  • MPC was down 5.3% yesterday.

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More details on MPC:

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Speedway, and Pipeline Transportation. The stock currently has a dividend yield of 3.8%. MPC has a PE ratio of 6. Currently there are 8 analysts that rate Marathon Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Marathon Petroleum has been 7.4 million shares per day over the past 30 days. Marathon has a market cap of $17.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.59 and a short float of 1.5% with 0.82 days to cover. Shares are down 39% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marathon Petroleum as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • MPC, with its decline in revenue, slightly underperformed the industry average of 32.6%. Since the same quarter one year prior, revenues fell by 32.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.52% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The gross profit margin for MARATHON PETROLEUM CORP is currently extremely low, coming in at 8.13%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 1.36% is above that of the industry average.

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