Back to top

Image: Bigstock

Marathon Oil (MRO) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Marathon Oil (MRO - Free Report) closed the most recent trading day at $11.81, moving +0.25% from the previous trading session. This change lagged the S&P 500's 0.42% gain on the day.

Coming into today, shares of the energy company had lost 13.51% in the past month. In that same time, the Oils-Energy sector lost 5.68%, while the S&P 500 gained 2.64%.

Investors will be hoping for strength from MRO as it approaches its next earnings release, which is expected to be August 4, 2021. The company is expected to report EPS of $0.18, up 130% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 321.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $4.82 billion. These totals would mark changes of +187.07% and +56.04%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MRO. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 36.56% higher. MRO is currently a Zacks Rank #2 (Buy).

Looking at its valuation, MRO is holding a Forward P/E ratio of 11.68. This represents a discount compared to its industry's average Forward P/E of 13.56.

Also, we should mention that MRO has a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 2.55 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Marathon Oil Corporation (MRO) - free report >>

Published in