Marathon Oil (MRO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Marathon Oil (MRO) closed at $25.68, marking a -0.27% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.36%.
Coming into today, shares of the energy company had gained 8.15% in the past month. In that same time, the Oils-Energy sector gained 8.66%, while the S&P 500 gained 5.64%.
Marathon Oil will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $0.81, up 285.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, up 46.85% from the prior-year quarter.
MRO's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $6.22 billion. These results would represent year-over-year changes of +105.73% and +13.79%, respectively.
Investors might also notice recent changes to analyst estimates for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 12.2% higher. Marathon Oil is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Marathon Oil has a Forward P/E ratio of 7.97 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.8.
Also, we should mention that MRO has a PEG ratio of 0.55. 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 0.47 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.
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