Murphy Oil Corporation’s MUR steady E&P and development activities in the United States as well as in other international locations, cost-saving initiatives and low-cost asset development are expected to boost its performance.
We recently issued an updated research report on this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter positive earnings surprise of 31.98%, on average.
What’s Aiding the Stock?
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies as well as independent E&P group. The company is pursuing steady E&P and development activities in the United States and other international locations.
In the past several months, the company is trying to transform through acquisitions, divestitures and oil-weighted discoveries. Focus on development of high-margin liquid assets is evident from the production mix.
Moreover, it has a long history of increasing the value of its shareholders, courtesy of steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to shareholders through buybacks and dividend payouts. Consistent performance enabled the company to reward its shareholders through regular dividend payouts.
However, Murphy Oil operates in a highly-competitive environment which might hinder its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are near-term concerns for the company.
Shares of Murphy Oil have plunged 44.4% in the past 12 months compared with the industry’s 50.2% decline.
Stocks to Consider
A few better-ranked stocks from the same sector are Bloom Energy Corporation BE, Devon Energy Corporation DVN and Oasis Midstream Partners LP OMP. Oasis Midstream Partners LP sports a Zacks Rank #1, while Devon Energy and Bloom Energy hold a Zacks Rank #2 (Buy) at present.
Oasis Midstream Partners LP’s Zacks Consensus Estimate for 2020 earnings has remained unchanged over the past 30 days. It has a trailing four-quarter positive earnings surprise of 32.11%, on average.
The long-term earnings growth rate of Bloom Energy pegged at 25%. The company has a trailing four-quarter positive earnings surprise of 75.40%, on average.
Devon Energy’s long-term earnings growth rate is 4.11%. It has a trailing four-quarter positive earnings surprise of 60.57%, on average.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Oasis Midstream Partners LP (OMP) : Free Stock Analysis Report
Bloom Energy Corporation (BE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research