Over the last 12 months, the price of oil has almost doubled. There were some historically volatile moments when the price of oil went into negative territory as the coronavirus pandemic broke out, and there was a lot of uncertainty regarding the same. However, vaccination drives are in place, there is a lot that we know about the disease, and the global economy is gradually getting back on its feet. The demand for oil also seems to be stabilizing, and the prices reflect the positive sentiment. Therefore, now may be a good time to search for top oil and gas stocks to buy now. One can look at upstream companies, oilfield service providers, or downstream players. Refinery businesses like Marathon Petroleum Corporation are part of the downstream sub-sector.
More About Marathon Petroleum Corporation
Marathon Petroleum Corporation is currently trading at a P/E ratio of 7.8, whereas its 5-year historical average is almost 15. The dividend yield is also above 3.7%, also the 5-year historical average. The yield had crossed the 5% level at one point in 2020 before subsiding. However, it is still at a relatively high level when comparing the dividend yields over the past decade. The payout ratio for Marathon Petroleum Corporation has also been quite stable and remained below 50%. One of the milestone moments for Marathon Petroleum Corporation came in October 2018, when the company became the largest petroleum refinery in the US after the acquisition of Andeavor. The refining capacity of Marathon is over 3 million barrels per day. If you are looking for the best oil and gas stocks to buy, then Marathon Petroleum Corporation could be a candidate.
Marathon Petroleum Corporation’s stock has doubled over the past year. It was around $30, and the price has crossed $60 in May 2021. The stock fell more than 60% during the March 2020 crash before recovering to its current levels.