Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives and low-cost asset development are expected to boost its performance in the future.
We recently issued an updated research report on this currently Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter earnings surprise of 35.91%, 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 within the independent E&P group. The company is regularly pursuing developmental activities in the United States and on foreign shores. It undertook cost-containment initiatives and has a target to lower its 2020 G&A expenses by 50% from the 2015 levels.
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 the production mix. The company is maintaining a multi-basin portfolio including its onshore and offshore assets for additional risk- reduction flexibility amid the fluctuating prices.
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.
Shares of Murphy Oil have soared 50.3% in the past six months compared with the industry’s 42.7% rise.
Other Stocks to Consider
A few other top-ranked stocks in the same industry are Concho Resources Inc. (CXO - Free Report) , EOG Resources, Inc. (EOG - Free Report) and Parsley Energy, Inc. (PE - Free Report) , all stocks carrying a the same Zacks Rank as Murphy Oil, presently.
Concho Resources delivered an earnings surprise of 67.15%, on average, in the last four quarters. It has a long-term (three-five years) earnings growth rate of 11.93%.
EOG Resources has a long-term earnings growth rate of 8.38%. The Zacks Consensus Estimate for 2020 earnings has moved 8.5% north in the past 30 days.
Parsley Energy delivered an earnings surprise of 28.26%, on average, in the trailing four quarters. It has a long-term earnings growth rate of 36.53%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>