Murphy Oil Corporation’s MUR cost-saving initiatives and low-cost asset development are expected to boost its performance in the future.
We 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 Driving 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 the development of high-margin liquid assets is evident from the production mix. During second-quarter 2019, the company completed accretive deepwater Gulf of Mexico acquisition for a cash consideration of $1.227 billion. In the third quarter, Murphy Oil completed the sale of Malaysian assets for $2 billion.
It has a long history of increasing the value of its shareholders, courtesy of steady cash flows. Since 2012, Murphy Oil returned $3.9 billion to its shareholders through buybacks and dividend payouts. Consistent performance enabled the company to reward its shareholders through regular dividend payouts.
However, a highly-competitive industry, stringent regulations and unfavorable foreign currency conversion rates are headwinds.
Shares of Murphy Oil have lost 51.5% in the past 12 months compared with the industry’s 51.1% decline.
Stocks to Consider
A few better-ranked stocks from the same sector are Bloom Energy Corporation BE, Devon Energy Corporation DVN and Noble Energy Inc. NBL. Bloom Energy sports a Zacks Rank #1(Strong Buy), while Devon Energy and Noble Energy hold a Zacks Rank #2 (Buy) at present.
The long-term earnings growth rate of Bloom Energy, Devon Energy and Noble Energy is pegged at 25%, 4.10% and 9%, respectively.
Bloom Energy, Devon Energy and Noble Energy have a trailing four-quarter positive earnings surprise of 75.40%, 60.57% and 144.15%, respectively, on average.
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Noble Energy Inc. (NBL) : Free Stock Analysis Report
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Bloom Energy Corporation (BE) : Free Stock Analysis Report
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