Earnings estimates for Murphy Oil Corporation MUR have been revised upward in the past 60 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings moved up 43.2% and 10.2% to $1.49 and $2.59 per share, respectively.
Let’s focus on the factors that make Murphy Oil a profitable pick.
Earnings & Surprise History
Murphy Oil delivered first-quarter 2019 adjusted earnings of 15 cents per share, which beat the Zacks Consensus Estimate of 10 cents by 50%. The company’s average four-quarter positive earnings surprise is 17.33%.
Zacks Rank & Price Movement
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Murphy Oil have gained 16.2% year to date compared with the industry’s rise of 9.5%.
Debt/Capital &Current Ratio
Murphy Oil is continuously working to preserve balance-sheet strength. Currently, the company has a current ratio of 1.61. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 40.19%, lower than the Zacks S&P 500 composite’s level of 42.29%.
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies as well as independent E&P group. The company projects 2019 capital expenditures in the range of $1.15-$1.35 billion. In the first quarter, the company spent $591 million on exploration and production, up 49% from year-ago quarter’s level. Higher capital expenditures reflect increased development drilling activities.
Other Stocks to Consider
Some other top-ranked stocks from the same industryare Anadarko Petroleum Corporation APC, Apache Corporation APA and Continental Resources, Inc CLR, Anadarko Petroleum and Apache sport a Zacks Rank of 1, while Continental Resources holds a Zacks Rank of 2.
Anadarko Petroleum pulled off average positive earnings surprise of 6.63% in the last four quarters. The company’s long-term earnings growth is pegged at 6.50%.
Apache came up with average positive earnings surprise of 31.12% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.
Continental Resources delivered average positive earnings surprise of 7.78% in the last four quarters. The company’s long-term earnings growth is pegged at 16.60%.
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