Jim Cramer Recommends Buying This Energy Stock: It Is ‘Too Cheap’
Jim Cramer favors undervalued Kinder Morgan and high-yield MPLX, warns StandardAero may fall, and avoids money-losing POET Technologies.
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Morgan Stanley analyst Robert Kad maintains MPLX (NYSE:MPLX) with a Equal-Weight and raises the price target from $60 to $66.
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Jim Cramer favors undervalued Kinder Morgan and high-yield MPLX, warns StandardAero may fall, and avoids money-losing POET Technologies.
A $1,000 investment in Marathon Petroleum (MPC) made in September 2016 would be worth $9,673.54 as of September 18, 2026, representing an 867.35% gain. This significantly outperformed the S&P 500's 257.04% return over the same period. Analysts maintain an Outperform rating, citing the company's scale, integrated refining system, midstream operations through MPLX, and favorable refining margins.
Energy Transfer (ET) and MPLX are recommended as reliable income-generating midstream pipeline companies for September investment. Both MLPs offer high dividend yields (6.4% and 7.3% respectively) that are well-supported by their distributable cash flow, trade at attractive valuations, and are insulated from volatile commodity prices due to their 'toll road' business model.
MPLX, an oil and gas pipeline company organized as a master limited partnership, offers an attractive 7.4% dividend yield and a P/E ratio under 13. While the high yield reflects the company's income-focused business model with limited growth prospects, the main drawback is its MLP structure, which creates additional tax-filing complexity. Despite this burden, the strong dividend yield may justify the investment for income-focused investors.