Morgan Stanley’s Best Stocks For Economic Recovery: Top 9 Cyclical Stocks

7. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders In Q3 2024: 39

Marathon Petroleum Corporation (NYSE:MPC) is an American oil and gas company that operates refineries and transportation facilities and sells refined products in the market. As a result, its stock is dependent on global oil demand, economic activity, and crude oil prices. The dependence on economic activity makes it unsurprising that Marathon Petroleum Corporation (NYSE:MPC)’s shares are up by a modest 3% year-to-date. As of H1 2024, 96% of the firm’s revenue depended on its refining operations, and among these, the majority comes through sales to external parties. While Marathon Petroleum Corporation (NYSE:MPC)’s shares are up by 8% since the firm’s third-quarter earnings beat analyst EPS estimates of $0.98 by posting $1.87 on the back of higher refining utilization and throughput, the firm’s future stock price performance is dependent on consistent utilization and robust local and global oil demand.

Marathon Petroleum Corporation (NYSE:MPC)’s management shared its future outlook during the Q3 2024 earnings call. Here is what they said:

“We are unwavering in our commitment to safe and reliable operations, operational excellence commercial execution and cost competitiveness yields sustainable structural benefits and position us to deliver peer-leading financial performance in each of the regions in which we operate. To deliver this, we will optimize our portfolio to deliver outperformance now and in the future. We’ll leverage our value chain advantages and ensure the competitiveness of our assets while continuing to invest in our people. Our execution of these commitments position us to deliver the strongest through cycle cash generation. Durable midstream growth is expected to deliver cash flow uplift. Investing capital where we believe there are attractive returns will enhance our competitiveness now and for the future.

We are committed to leading capital allocation and will return excess capital through share repurchases. MPC is positioned to create exceptional value through peer-leading performance, execution of our strategic commitments and its compelling value proposition.”