Why Marathon Petroleum Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petroleum refiner Marathon Petroleum has earned a coveted five-star ranking.

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

Marathon facts

Headquarters

Findlay, Ohio

Market Cap

$26.8 billion

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$76.6 billion

Management

CEO Gary Heminger (since 2011)
CFO Donald Templin (since 2011)

Return on Equity (Average, Past 3 Years)

22.2%

Cash/Debt

$3.4 billion / $3.4 billion

Dividend Yield

1.8%

Competitors

Chevron \
ExxonMobil

Valero Energy


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

On CAPS, 98% of the 168 members who have rated Marathon believe the stock will outperform the S&P 500 going forward.

Just this past week, one of those Fools, All-Star 3Fairfield, kindly updated our community on the Marathon opportunity:

I just listened to the recent Credit Suisse presentation (Feb. 6 2013) by Gary Heminger, CEO. He asserted that although [Marathon] had quite a good year last year and the stock experienced a significant run up, he believes there is more value and growth in store for 2013. ... Heminger also projects continued share repurchases thru 2013 and a growing dividend.

Heminger mentioned that [Marathon] will be well positioned for the expected Utica Shale drilling, projected to ramp up in mid 2013. ... I am cautiously optimistic that we will see an increase in the stock price while the US energy sector enjoys its prosperity in the next several years.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Marathon may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

The article Why Marathon Petroleum Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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