What Is The Price Of Marathon Petroleum Company Stock Today

Marathon Petroleum Company Stock Overview

Marathon Petroleum Corporation is an American petroleum refining and marketing company. It is the largest oil refining company in the United States with a network of over 3,900 retail stores. Its portfolio includes seven refineries, several pipelines operating in the midwestern and western states and a transportation fleet that has secured its status as one of the biggest fuel transportation companies in the US. The company provides customers with branded gas, diesel, aviation fuel, heating oil and other petroleum products.

Marathon Petroleum Corporation started off as an independent refiner and remains the largest US refiner in Europe. It has since diversified into retail, natural gas production and generation, transportation, logistics and a fuel blending business. The stock has been accompanied by an impressive financial performance since it was listed on the NYSE in 2013.

The stock has consistently shown an upward trend, gaining more than 6 percent in the last one year. For the past three years, Marathon Petroleum Company has posted annualized returns of 18.99%. This performance has outpaced the S&P 500, adding to the optimism for the refining behemoth’s future prospects. The stock does not pay dividends, which makes it attractive for investors wanting to participate in its growth trajectory. The company has an attractive balance sheet, suggesting there is potential for further growth in its stock price.

Current Price Of Marathon Petroleum Stock

As of writing, the stock of Marathon Petroleum Company is trading at $34.05 per share. The stock finished the day at a new all-time high of $35.41. The stock has been in a strong uptrend since the start of the year, rising more than 26 percent so far. The bullish sentiment appears to be driven by the company’s potential to benefit from the ongoing oil price recovery. The company is expected to benefit from the increasing demand for petroleum products due to increased global economic activity.

In addition, the company has also been able to capitalize on higher oil prices due to its efficient utilization of its downstream operations. Marathon Petroleum stock surged more than 17 percent since its second-quarter 2020 earnings report. The upbeat report further reinforced optimism about Marathon’s future performance.

Expected Price Targets of Marathon Petroleum Stock

Analysts have been raising the target prices of Marathon Petroleum stock to unprecedented levels. Many analysts now have price targets of $45 to $50 for the stock, suggesting that the stock could see further upside heading into 2021. The bullish estimates are in line with the company’s strong financial performance, which has seen revenue and profits rise over the last year.

Analysts also expect the stock to continue to benefit from the ongoing recovery in oil prices. In addition, the company’s efficient utilization of its downstream operations and its strategic focus on cost cuts are expected to boost its bottom line. Furthermore, the company is expected to benefit from the upcoming IMO2020 regulatory changes, which will reduce the sulfur content of fuel.

Risk Factors For Marathon Petroleum Investors

The stock of Marathon Petroleum carries a certain amount of risk. It is exposed to volatility due to changes in the global economy and oil markets. Additionally, the stock may also suffer if the refining industry experiences a downturn due to rising competition. Furthermore, the recent ransomware attack on the company’s networks could negatively impact its near-term performance. Therefore, long-term investors should exercise caution before making an investment in the stock.

Analysts’ Recommendations on Marathon Petroleum Stock

Most analysts remain bullish on Marathon Petroleum stock and are reiterating their buy recommendations. According to analysts at Bank of America, the stock has strong growth potential, and they have upped their price target from $43 to $46. Similarly, Morgan Stanley has upgraded its rating of the stock from hold to buy and has a new price target of $47.

Goldman Sachs and Credit Suisse have both raised their price targets to $45 and $41, respectively. In addition, Wells Fargo has started covering the stock with a $50 price target. Currently, 56 percent of the analysts who cover the stock have given a buy rating, while 15 percent still maintain a hold rating.

Investment Summary

Marathon Petroleum Corporation is the largest US refiner and a major player in downstream and retail markets. The stock has shown an impressive performance, rising more than 26 percent from the start of the year and surpassing the performance of the S&P 500. Analysts believe the stock has significant upside potential due to its efficient utilization of downstream operations, strategic cost cutting and anticipated benefits from the upcoming IMO2020 regulations.

Analysts have a consensus price target of $45-$50 for the stock, suggesting investors could see further upside. However, Marathon Petroleum stock carries certain risks due to its exposure to global economic and oil market conditions. Therefore, investors should exercise caution before making an investment in the stock.

Influence of Coronavirus On Marathon Petroleum Stock

The novel coronavirus pandemic has impacted the stock of Marathon Petroleum in a few ways. Firstly, the drop in oil prices in early 2020 had a significant impact on the stock. Marathon Petroleum and other refining stocks were hit hard by the oil price crash due to their exposure to the energy sector.

In addition, the pandemic has also resulted in lower demand for petroleum products due to travel restrictions and decreased economic activity. Despite this, the stock has managed to recover from the March 2020 low and has been boosted by the ongoing recovery in oil prices.

Karen Jones, an analyst at Bank of America, has stated that the recent recovery in crude prices and a more optimistic outlook for global economic conditions have led to improved sentiment for the stock. She has also said that the stock could benefit further from increasing demand for petroleum products as the global economy continues to recover.

Conclusion

Marathon Petroleum Corporation is the largest US refining company and a major player in downstream and retail markets. The stock has been outperforming the S&P 500, rising more than 26 percent since the start of the year. Analyst estimates for the stock range from $45 to $50, with the majority giving a ‘buy’ rating. Despite its strong performance, Marathon Petroleum stock carries certain risks due to its exposure to global economic and oil market conditions.

Wallace Jacobs is an experienced leader in marketing and management. He has worked in the corporate sector for over twenty years and is a driving force behind many successful companies. Wallace is committed to helping companies grow and reach their goals, leveraging his experience in leading teams and developing business strategies.

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