Marathon Oil (MRO) Stock Sinks As Market Gains: What You Should Know
Marathon Oil (MRO) closed at $22 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Coming into today, shares of the energy company had lost 11.27% in the past month. In that same time, the Oils-Energy sector lost 5.47%, while the S&P 500 lost 1.21%.
Marathon Oil will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.73, down 28.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.76 billion, up 0.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $7.41 billion, which would represent changes of -22.1% and -7.81%, respectively, from the prior year.
Any recent changes to analyst estimates for Marathon Oil should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.46% lower. Marathon Oil currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Marathon Oil currently has a Forward P/E ratio of 6.38. This valuation marks a discount compared to its industry's average Forward P/E of 10.55.
Meanwhile, MRO's PEG ratio is currently 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.43 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Marathon Oil Corporation (MRO) : Free Stock Analysis Report
