Why Marathon Petroleum Is Poised to Outperform

Market-trouncing returns could be written in these stars.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 10, 2013 at 8:00AM
Energy, Materials, and Utilities

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 (NYSE:MPC) 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


Findlay, Ohio

Market Cap

$26.8 billion


Oil and gas refining and marketing

Trailing-12-Month Revenue

$76.6 billion


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

Return on Equity (Average, Past 3 Years)



$3.4 billion / $3.4 billion

Dividend Yield



Chevron (NYSE:CVX)\
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.

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