Marathon Oil (MRO) Outperforms Broader Market: What You Need to Know
The latest trading session saw Marathon Oil (MRO) ending at $24.59, denoting a +1.44% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.6%.
Coming into today, shares of the energy company had lost 9.21% in the past month. In that same time, the Oils-Energy sector lost 5.46%, while the S&P 500 lost 5.17%.
Market participants will be closely following the financial results of Marathon Oil in its upcoming release. The company plans to announce its earnings on November 1, 2023. The company's upcoming EPS is projected at $0.66, signifying a 46.77% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, down 24.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.64 per share and a revenue of $6.64 billion, demonstrating changes of -41.07% and -17.41%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Marathon Oil. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.74% upward. At present, Marathon Oil boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Marathon Oil is at present trading with a Forward P/E ratio of 9.19. This expresses a discount compared to the average Forward P/E of 15.03 of its industry.
Meanwhile, MRO's PEG ratio is currently 0.47. 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. MRO's industry had an average PEG ratio of 0.69 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 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.
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Marathon Oil Corporation (MRO) : Free Stock Analysis Report
