10 Most Undervalued Oil Stocks To Buy According To Analysts

3. Marathon Petroleum Corporation (NYSE:MPC)

Forward Price-to-Earnings Ratio: 14.06

Analyst Upside: 6.16%

Number of Hedge Fund Holders: 57

Marathon Petroleum Corporation (NYSE:MPC) is one of the 10 most undervalued oil stocks to buy according to analysts. On June 11, Wolfe Research maintained its Outperform rating on Marathon Petroleum Corporation (NYSE:MPC) while increasing its price target to $187 from $186.

In keeping with its larger refining competitors, Marathon Petroleum Corporation (NYSE:MPC) has outperformed the Energy Select Sector SPDR Fund by about 17% year-to-date. According to Wolfe Research, the second quarter is a seasonal turning point for margins, but there are still potential challenges, including tight crude differentials.

The firm emphasized that Marathon Petroleum Corporation (NYSE:MPC) has one of the lowest cost structures in the industry and that Marathon’s 64% ownership holding in MPLX reduces the volatility of refining margins. Marathon has repurchased around 45% of its outstanding shares since the start of 2022, at a rate that will retire an additional 4% at present rates by the end of this year.

Additionally, the research firm pointed out that Marathon Petroleum Corporation (NYSE:MPC) remains hopeful about the refining environment as announcements of closures in key regions commence, especially on the West Coast.

With 13 refineries and a daily crude oil capacity of almost 3 million barrels, Marathon Petroleum Corporation (NYSE:MPC) is a prominent integrated downstream energy corporation that manages the largest refining system in the United States.