Marathon Oil (MRO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Marathon Oil (MRO) closed the latest trading day at $28.17, indicating a -1.12% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.17%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
Shares of the energy company witnessed a gain of 8.91% over the previous month, beating the performance of the Oils-Energy sector with its loss of 0.51% and the S&P 500's loss of 3.95%.
Analysts and investors alike will be keeping a close eye on the performance of Marathon Oil in its upcoming earnings disclosure. The company's earnings report is set to go public on November 1, 2023. It is anticipated that the company will report an EPS of $0.68, marking a 45.16% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, down 22.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.68 per share and a revenue of $6.72 billion, demonstrating changes of -40.18% and -16.33%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Marathon Oil. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 7.29% rise in the Zacks Consensus EPS estimate. Marathon Oil is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Marathon Oil has a Forward P/E ratio of 10.64 right now. Its industry sports an average Forward P/E of 15.74, so one might conclude that Marathon Oil is trading at a discount comparatively.
Also, we should mention that MRO has a PEG ratio of 0.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Integrated - United States industry was having an average PEG ratio of 0.76.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Marathon Oil Corporation (MRO) : Free Stock Analysis Report
