NEW YORK (TheStreet) -- Shares of Marathon Petroleum (MPC - Get Report) are slipping by 5.86% to $43.69 in early afternoon trading on Wednesday, as some energy and related stocks retreat after oil prices reversed today's earlier gains.
Crude oil (WTI) is up by 0.30% to $30.53 per barre, the price moved more than 3% earlier today. Brent crude is down by 0.97% to $30.56 per barrel, Brent was up more than 3% as well this morning.
Oil prices moved lower following the latest U.S. inventory data from the Energy Information Administration, the Wall Street Journal reports. Supplies of crude oil and refined products grew by 10 million barrels for the week ended January 8 to total 1.3 billion barrels, a record high.
Marathon Petroleum is a Findlay, OH-based petroleum product refining, marketing, retail and transportation businesses.
Crude stockpiles at the Cushing, OK delivery hub grew by 100,000 barrels to 64 million barrels, another record, the Journal added.
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. TheStreet Ratings has this to say about the recommendation:
We rate MARATHON PETROLEUM CORP as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MARATHON PETROLEUM CORP has improved earnings per share by 49.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MARATHON PETROLEUM CORP increased its bottom line by earning $4.42 versus $3.31 in the prior year. This year, the market expects an improvement in earnings ($5.88 versus $4.42).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 41.1% when compared to the same quarter one year prior, rising from $672.00 million to $948.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MARATHON PETROLEUM CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MPC