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Marathon Petroleum - AI Stock Analysis

Analysis generated June 29, 2024

Marathon Petroleum Corporation (NYSE: MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system with more than 3 million barrels per day of refining capacity across 13 refineries. Marathon Petroleum also owns and operates a vast marketing and logistics network, including branded locations and various pipeline and marine terminals. The company focuses on generating long-term shareholder value through sustainable practices and efficient operations.

Fundamental Analysis

For the latest quarter, Marathon Petroleum reported a revenue of $32.7 billion. This marks an impressive increase of 11,906.25% compared to the previous quarter. This remarkable growth is a positive indicator of the company's ability to capitalize on market opportunities. However, compared to the same quarter last year, there is a decrease of 5.66%, which raises some flags about the sustainability of growth.

The net income for the last quarter was $937 million. This represents a significant decrease of 35.42% compared to the quarter before it, and a dramatic decrease of 65.60% compared to the same quarter last year. These declines indicate potential underlying issues affecting profitability and operational efficiency.

EBITDA for the last quarter was $2.74 billion, showcasing a decrease of 8.88% compared to the previous quarter and a drop of 42.69% year-on-year. This downward trend in EBITDA is alarming as it reflects weakened core earnings and could impact future cash flow.

The current price-to-earnings (P/E) ratio is 8.59, which is relatively low. A low P/E often suggests that the stock is undervalued, presenting a potential buying opportunity for investors looking for value.

Technical Analysis

Marathon Petroleum's stock price currently sits at $173.48, reflecting an increase of 0.59% over the past month. This short-term growth suggests a positive trend in the stock's movement. Even more impressive, the stock has surged by 51.87% compared to a year ago, indicating strong long-term performance.

The current 10-day simple moving average (SMA10) is $173.50, slightly higher than the previous SMA10 of $173.40. This upward movement in the SMA10 suggests a potential rise in the stock price.

The Relative Strength Index (RSI) is 56.6, which is in neutral territory. An RSI close to 50 typically indicates that the stock is neither overbought nor oversold, allowing for further price stabilization or potential upward movement.

Alternative Data Analysis

Based on job postings on popular job boards, Marathon Petroleum has 47 open positions, a 15% decrease in recent months. This reduction may be an effort to improve margins or cut costs, which may be concerning for growth-oriented investors.

Employee sentiment regarding the business outlook remains neutral, indicating neither a strong positive nor negative perspective on the company's future.

Customer acquisition metrics show an estimate of 130,000 visitors to Marathon Petroleum's webpage, up by 40% recently. This trend indicates a bullish outlook, as increased web traffic often translates to more customers.

Customer engagement data reveals Marathon Petroleum has 8,200 followers on Instagram, up by 3% in the past couple of months. This indicates growing interest and engagement from consumers. However, Twitter followers remain static at 150, showing no meaningful change.

The AltIndex AI score, which combines fundamental, technical, and alternative data analyses, gives Marathon Petroleum a score of 63, signifying a ‘buy’ signal.

Conclusion and Recommendation

Marathon Petroleum presents a complex yet compelling investment case. Fundamental analysis reveals significant revenue growth against the previous quarter but notes concerning declines in net income and EBITDA. The low P/E ratio suggests potential undervaluation, presenting a buying opportunity.

Technically, the stock exhibits both short-term and long-term upward trends, with a neutral RSI suggesting the possibility of further gains. Alternative data shows mixed signals; while job postings and employee sentiment indicate cost-cutting and neutrality, increased website traffic and social media growth point to enhanced customer interest.

Considering all available data, including the AltIndex AI score of 63, the recommendation is to buy Marathon Petroleum stock. The potential undervaluation, upward price trends, and increasing customer engagement offer a promising investment opportunity despite some fundamental concerns.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.