It’s cheaper than it should be.ĬF Industries (NYSE: CF) is much the same as Marathon Petroleum stock in that regard. Investors simply aren’t willing to pay as much for a dollar of its earnings as they were previously. Its P/E ratio is just about as low as it has been in the last decade. Investors aren’t particularly enthusiastic about MPC stock, however. The downstream segment boomed, moving from $1.37 billion to $3.8 billion in earnings. Midstream earnings (29% of the total) increased from $1.4 billion to $1.53 billion in the first quarter. However it’s defined, Marathon Petroleum is growing on both fronts. The company currently makes the bulk of its earnings via the downstream segment so it’s more accurately a downstream firm. It basically transports crude in its midstream business and refines and markets it downstream. Marathon Petroleum is a midstream/downstream oil company. But before jumping into that, let’s first understand the oil firm’s business model. The metrics surrounding the company point squarely to that notion. Marathon Petroleum (NYSE: MPC) stock remains inexpensive overall. Undervalued S&P 500 Stocks: Marathon Petroleum (MPC) That’s a huge accomplishment and bodes well for the fact that so many pundits worry about debt reduction as their primary concern with Delta. That led to an incursion of debt that currently plagues all airlines.īut Delta offers positive news there: The company reported record free cash flows in the March quarter that allowed it to complete its full-year planned debt reduction in the first half of the year. Just to refresh your memory, Delta was burning through $27 million in cash per day in June 2020. Airlines were losing money hand-over-fist as it dragged on due to grounded operations. Part of the hesitation around Delta stock stems from the pandemic hangover. It’s also worth noting that those same analysts overwhelmingly rate DAL stock as a buy. Surging summer travel should reward Delta and is a great reason to get on board now. Management said it in no unclear terms: “Expect record June quarter revenue.” Share prices have moved up since then but there is plenty of room for growth remaining based on Wall Street analyst projections. Undervalued S&P 500 Stocks: Delta Airlines (DAL)ĭelta Airlines (NYSE: DAL) already telegraphed a strong second quarter when it released Q1 earnings back in mid-April.
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