Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development along with steady growth-driving activities in the United States and at international locations are expected to boost its existing businesses.
We recently issued an updated research report on this currently Zacks Rank #3 (Hold) company, which has a trailing four-quarter earnings surprise of 19.43%, 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 and the independent E&P group. The company is regularly pursuing developmental endeavors in the United States and at other global sites. It undertook cost-containment measures, which led to a 40% decline in 2020 G&A expenses from the 2019 baseline.
Over the past several months, the company has been trying to transform its portfolio through strategic moves like acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from its production mix. The company is maintaining a multi-basin portfolio of onshore and offshore assets for additional risk-reduction flexibility amid fluctuating prices.
Moreover, it has a long history of shareholder value addition, courtesy of its steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistent operational excellence enabled it to reward its shareholders through routine dividend payouts.
Woes
However, Murphy Oil operates in a highly competitive environment, which might dent its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have rallied 65.8% in the past three months, outperforming the industry’s 56.3% growth.
Stocks to Consider
A few better-ranked stocks in the same sector are Devon Energy Corporation (DVN - Free Report) , Denbury Inc. and DCP Midstream Partners, LP , all sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy delivered an earnings surprise of 66.7%, on average, in the last four quarters. The company has a long-term (three-five years) earnings growth rate of 1.12%
Denbury delivered an earnings surprise of 16.25%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 85.3% north in the past 60 days.
DCP Midstream delivered an earnings surprise of 13.57%, on average, in the trailing four quarters. The Zacks Consensus Estimate for 2021 earnings has been revised 21.3% upward in the past 60 days.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development along with steady growth-driving activities in the United States and at international locations are expected to boost its existing businesses.
We recently issued an updated research report on this currently Zacks Rank #3 (Hold) company, which has a trailing four-quarter earnings surprise of 19.43%, 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 and the independent E&P group. The company is regularly pursuing developmental endeavors in the United States and at other global sites. It undertook cost-containment measures, which led to a 40% decline in 2020 G&A expenses from the 2019 baseline.
Over the past several months, the company has been trying to transform its portfolio through strategic moves like acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from its production mix. The company is maintaining a multi-basin portfolio of onshore and offshore assets for additional risk-reduction flexibility amid fluctuating prices.
Moreover, it has a long history of shareholder value addition, courtesy of its steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistent operational excellence enabled it to reward its shareholders through routine dividend payouts.
Woes
However, Murphy Oil operates in a highly competitive environment, which might dent its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have rallied 65.8% in the past three months, outperforming the industry’s 56.3% growth.
Stocks to Consider
A few better-ranked stocks in the same sector are Devon Energy Corporation (DVN - Free Report) , Denbury Inc. and DCP Midstream Partners, LP , all sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy delivered an earnings surprise of 66.7%, on average, in the last four quarters. The company has a long-term (three-five years) earnings growth rate of 1.12%
Denbury delivered an earnings surprise of 16.25%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 85.3% north in the past 60 days.
DCP Midstream delivered an earnings surprise of 13.57%, on average, in the trailing four quarters. The Zacks Consensus Estimate for 2021 earnings has been revised 21.3% upward in the past 60 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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