Marathon Oil (MRO) Gains But Lags Market: What You Should Know
Marathon Oil (MRO) closed at $27.47 in the latest trading session, marking a +1.4% move from the prior day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.
Heading into today, shares of the energy company had gained 0.07% over the past month, lagging the Oils-Energy sector's gain of 1.9% and the S&P 500's gain of 4.75% in that time.
Marathon Oil will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2023. In that report, analysts expect Marathon Oil to post earnings of $0.89 per share. This would mark year-over-year growth of 15.58%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, down 2.54% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Marathon Oil. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 10.55% lower. Marathon Oil is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Marathon Oil currently has a Forward P/E ratio of 7.26. This represents a discount compared to its industry's average Forward P/E of 12.03.
It is also worth noting that MRO currently has a PEG ratio of 0.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.44 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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