Yahoo Finance The Zacks Analyst Blog Highlights Marathon, Ovintiv and Delek US Holdings
For Immediate Releases
Chicago, IL – June 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marathon Petroleum MPC, Ovintiv Inc. OVV and Delek US Holdings DK.
Here are highlights from Wednesday’s Analyst Blog:
3 Energy Stocks to Monitor After Pullbacks
Oil prices have trended lower over the past three weeks due to concerns over demand and the perception that geopolitical risks to crude supplies are ebbing.
This decline accelerated after OPEC+ announced plans to phase out output cuts starting in October. The central bank’s indication that aggressive rate cuts might be delayed due to slow disinflation also led to the decline.
As a result, several previously high-performing stocks have been caught up in this sell-off. However, now may be a good time to start eyeing rebounds in some of these companies, including Marathon Petroleum, Ovintiv Inc. and Delek US Holdings.
Marathon Petroleum: Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The Zacks Rank #3 (Hold) company operates in two segments: Refining and Marketing, and Pipeline Transportation.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has been in breakneck mode over the past 12 months, notching up a series of all-time highs. That said, MPC has now dipped -3% year to date and fallen more than 21% from its 52-week highs of $221.11 in early April.
Trading at a little under $175 per share and 9.05X forward price-to-earnings, Marathon Petroleum has a VGM Score of A. Over the past 30 days, this Findlay, OH-based-based refining giant saw the Zacks Consensus Estimate for 2024 move up 9.3%.
Moreover, Marathon Petroleum has exceeded the earnings mark in each of the past four quarters, delivering an average earnings surprise of 25% over that timeframe. As a matter of fact, MPC has established a long history of beating earnings estimates, with the last miss seen way back in the second quarter of 2019.
Ovintiv: Ovintiv is an independent E&P operator with an attractive oil and gas production portfolio in three major North American unconventional basins: Montney, Anadarko and the Permian.
OVV, carrying a Zacks Rank of 3, has ascended 31% in the past year but has dipped 13% from its 52-week high of $55.95 a share it hit in April. However, Ovintiv is still sitting on an 11% gain this year.
Ovintiv’s earnings revisions have trended in the right direction over the past 30 days as analysts have taken up their numbers. The Zacks Consensus Estimate for OVVs 2024 bottom line has gone up from a profit of $6.09 to a profit of $6.15 during this timeframe, while next year’s projection has gone up from a profit of $6.88 per share to $6.91.
Finally, Ovintiv enjoys a Value, Growth and Momentum Score of A, B and A, respectively, each helping it round out with a VGM Score of A.
Delek US Holdings: Founded in 2001, Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The #3 Ranked company’s operations are organized into three reportable segments: Refining, Logistics and Retail.
Delek has a similar scenario to Marathon Petroleum. Trading at around $25, DK has fallen 26% from its 52-week high of $33.60 in April. Still, the company has exceeded earnings expectations in three of its last four quarterly reports, missing just once, and has posted an average EPS surprise of 28.2% during this period.
Delek shares are not expensive on a valuation basis and investors need not pay a premium for the growth. As a matter of fact, the company’s stock currently trades at 0.13X forward P/S, which is at a significant discount to the Zacks industry average of 1.12X and well below the S&P 500’s 4.06X. A P/S ratio under 1.0 indicates value.
Another reason that Delek is a stock to watch out for is that it has a VGM Score of A for the combination of Value, Growth and Momentum.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Ovintiv Inc. (OVV) : Free Stock Analysis Report
