5-Star Stocks Poised to Pop: Marathon Petroleum

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, refinery operator Marathon Petroleum (NYS: MPC) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Marathon's business and see what CAPS investors are saying about the stock right now.

Marathon facts

Headquarters (Founded)

Findlay, Ohio (spun off from Marathon Oil, July 2011)

Market Cap

$13.4 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$71.6 billion

Management

CEO Gary Heminger
CFO Donald Templin

Cash/Debt

$3.0 billion / $3.3 billion

Dividend Yield

2.7%

Competitors

Chevron
ExxonMobil
Valero Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 91 members who have rated Marathon believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, jamespeer, offered a few reasons that Marathon looks like an attractive bargain:

* We're looking at around $80 [billion] for FY 2011 revenue so the stock is currently trading at around 0.15 sales!
* The bottom line for FY 2011 should come in around $2-2.5 [billion] taking into account the "small loss" expected for Q4, so we're trading at a mere 4.7 x FY 2011 earnings!
* $25 [billion] in assets, no intangibles, even taking into account ALL liabilities we're trading close to book value right now.

The stock is oversold ... willing to take a little gamble as results are due on 01 Feb, I don't think there will be anything in management's 2012 outlook to cause the stock to decline further.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Marathon may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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