Marathon Petroleum Corp (MPC): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Marathon Petroleum ( MPC) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Marathon Petroleum fell $4.05 (-4.9%) to $78.36 on heavy volume. Throughout the day, 6,921,241 shares of Marathon Petroleum exchanged hands as compared to its average daily volume of 3,688,900 shares. The stock ranged in price between $76.85-$81.63 after having opened the day at $79.93 as compared to the previous trading day's close of $82.41. Other companies within the Energy industry that declined today were: BMB Munai ( BMBM), down 12.6%, Torch Energy Royalty ( TRU), down 11.1%, CKX Lands ( CKX), down 6.8% and Ivanhoe Energy ( IVAN), down 6.5%.
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Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, transporting, and marketing petroleum products primarily in the United States. It operates through Refining & Marketing, Speedway, and Pipeline Transportation segments. Marathon Petroleum has a market cap of $27.0 billion and is part of the basic materials sector. The company has a P/E ratio of 8.3, below the S&P 500 P/E ratio of 17.7. Shares are up 29.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Marathon Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, GeoPetro Resources Company ( GPR), down 31.6%, Oil States International ( OIS), down 16.8%, GulfMark Offshore ( GLF), down 6.6% and Suncor Energy ( SU), down 6.4% , were all gainers within the energy industry with Occidental Petroleum Corporation ( OXY) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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