Energy Stock Eyeing New Record Despite Pullback

Year-over-year, the energy stock boasts a more than 69% lead

Digital Content Manager
Mar 6, 2023 at 12:18 PM
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Marathon Petroleum Corp (NYSE: MPC) stock is down 1.4% to trade at $131.66 at last check, as China's disappointing growth outlook drags the energy sector lower. The security is up 69.4% year-over-year, however, after surging to a Jan. 27, all-time high of $136.46. This pullback may have created the perfect buying opportunity for investors, too, as the security is currently flashing a bull signal.

MPC Intraday

According to Schaeffer's Quantitative Analyst Rocky White, MPC's latest peak comes amid historically low implied volatility (IV), which has been a bullish combination for the shares in the past. White's data shows seven similar signals in the past five years when the equity was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its annual range or lower. This is now the case with Marathon Petroleum stock's SVI of 31%, which ranks in the low 2nd percentile of its annual range. 

One month after these signals, MPC was higher 57% of the time to average a 4.4% pop. From its current perch, a move of comparable magnitude would place shares at a fresh record high of $137.45.

While the brokerage bunch already leans bullish, there is still some room for upgrades, which could push the equity even higher. Of the 14 analysts in coverage, four call MPC a tepid "hold."

 

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