Dividend Stock With Analysts Upside: Marathon Petroleum Corporation (NYSE:MPC)

If investors are looking for a stable dividend stock with upside, Marathon Petroleum Corporation (NYSE:MPC) could be one that fits the bill.  The stock currently provides a dividend yield of 2.90% for the Basic Materials company.  Sell-side analysts covering the shares are projecting that it will reach $102.00 within the next 12-18 months.  This is a solid upside to a recent tick of $63.55.  On a consensus basis, analysts have a Buy/Sell rating of 1.50, which is based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. Investors are usually scouring the markets for that next great stock pick. Locating that special winner to jumpstart the portfolio may involve lots of diligent hard work. Filing through the massive amounts of data regarding public companies can be an overwhelming task. Many successful investors will approach the equity markets from various sides. This may include keeping a close eye on the fundamentals as well as the technical data. This may also include following sell-side analyst opinions and tracking what the big money institutions are buying or selling.  

RECENT PERFORMANCE

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Marathon Petroleum Corporation (NYSE:MPC)’s stock was -3.68%.  Over the last week of the month, it was -2.65%, -23.25% over the last quarter, and  -19.71% for the past six months.

Over the past 50 days, Marathon Petroleum Corporation stock’s -28.15% off of the high and 4.80% removed from the low.  Their 52-Week High and Low are noted here.  -28.15% (High), 4.80%, (Low). 

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Marathon Petroleum Corporation’s EPS for the trailing 12 months is 5.01.  Their EPS should be compared to other companies in the Basic Materials sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Marathon Petroleum Corporation’s  P/E ratio is 12.69. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Marathon Petroleum Corporation’s  PEG is 0.32.

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Marathon Petroleum Corporation (NYSE:MPC)’s RSI (Relative Strength Index) is 37.81.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Investors are frequently looking for any possible way to get a leg up in the market. This may involve committing to plan that will hopefully outperform the market and maximize profits. Many investors will choose to employ top-down analysis. Top-down analysis involves examining the big picture of the economy and the world of finance. After studying global economic conditions, investors may then analyze different sectors that are possibly well positioned to beat the market. After identifying the sector or sectors, investors may then do further analysis of stocks within the specific industry in order to find firms that are successful and primed for growth. Other individual investors may choose to go with bottom-up analysis when looking for stock to add to the portfolio. The bottom-up approach takes the emphasis off of the power and significance of market and economic cycles. Investors may focus on individual companies and not worry so much about the specific industry or economy in general. 

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