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 0.6%. By the end of trading, Marathon Petroleum fell $2.83 (-3.5%) to $78.61 on average volume. Throughout the day, 3,955,106 shares of Marathon Petroleum exchanged hands as compared to its average daily volume of 3,720,500 shares. The stock ranged in price between $78.27-$81.36 after having opened the day at $81.24 as compared to the previous trading day's close of $81.44. Other companies within the Energy industry that declined today were: Resolute Energy ( REN), down 15.9%, Compressco Partners ( GSJK), down 8.0%, Sonde Resources ( SOQ), down 7.8% and Cobalt International Energy ( CIE), down 7.2%.
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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 $26.6 billion and is part of the basic materials sector. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 29.3% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Marathon Petroleum a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Marathon Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Syntroleum Corporation ( SYNM), down 32.5%, Pioneer Southwest Energy Partners ( PSE), down 23.6%, W&T Offshore ( WTI), down 15.4% and U.S. Energy ( USEG), down 12.3% , were all gainers within the energy industry with Royal Dutch Shell ( RDS.A) 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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