Marathon Petroleum Corporation (NYSE:MPC) is one of the 11 stocks that Jim Cramer recently commented on. During the lightning round, a caller asked about the company, and in response, Cramer commented:
“Yes, and it’s a good one. I think you want to own that stock. I like it very, very much. I just think that it’s one of the few… in that group that I actually want to own.”
An oil pipeline stretching for miles, signifying the transportation of fuels for the market.
Marathon Petroleum (NYSE:MPC) is an integrated energy company focused on refining crude oil, producing and marketing fuels and petrochemicals, transporting and storing hydrocarbon products, and processing renewable feedstocks into renewable diesel for distribution through various channels. Oakmark Fund stated the following regarding Marathon Petroleum Corporation (NYSE:MPC) in its Q1 2025 investor letter:
“Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company that refines, markets and transports petroleum products. Marathon commands the largest refining system in the United States with operations in attractive regions, which has provided meaningful cost advantages for the company and significant barriers to entry for competitors. In addition, we think Marathon’s midstream business is an attractive asset thanks to its high market share in one of the most prolific gas fields in the world, which provides stability to the company’s cash flows. Lastly, we appreciate management’s focus on returns on invested capital and willingness to return capital to shareholders. Over the last year, refining industry margins have come under pressure due to a global wave of new supply during a period of soft demand. We believe industry margins have fallen below sustainable levels and that, in the long run, supply and demand will return to balance which should lead to higher refining margins for Marathon. Today’s short-term imbalance provided the opportunity to purchase shares at an attractive valuation relative to both current and mid-cycle earnings.”
While we acknowledge the potential of MPC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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