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Marathon Oil (MRO) closed at $21.75 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Prior to today's trading, shares of the energy company had gained 0.64% over the past month. This has outpaced the Oils-Energy sector's loss of 4.39% and lagged the S&P 500's gain of 6.31% in that time.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Marathon Oil to post earnings of $1.28 per share. This would mark year-over-year growth of 481.82%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 77.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.07 per share and revenue of $8.08 billion, which would represent changes of +222.93% and +47.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Marathon Oil is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Marathon Oil has a Forward P/E ratio of 4.38 right now. Its industry sports an average Forward P/E of 11.01, so we one might conclude that Marathon Oil is trading at a discount comparatively.
Also, we should mention that MRO has a PEG ratio of 0.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MRO's industry had an average PEG ratio of 0.39 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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