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Is Marathon Oil (MRO) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Marathon Oil (MRO - Free Report) . MRO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.47, which compares to its industry's average of 6.40. Over the past 52 weeks, MRO's Forward P/E has been as high as 19.77 and as low as 4.26, with a median of 8.39.
Investors should also recognize that MRO has a P/B ratio of 1.35. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.99. Over the past 12 months, MRO's P/B has been as high as 2 and as low as 0.79, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MRO has a P/S ratio of 2.45. This compares to its industry's average P/S of 3.04.
Finally, we should also recognize that MRO has a P/CF ratio of 3.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.18. Over the past 52 weeks, MRO's P/CF has been as high as 6.97 and as low as 3.65, with a median of 5.71.
Another great Oil and Gas - Integrated - United States stock you could consider is Occidental Petroleum (OXY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Occidental Petroleum is trading at a forward earnings multiple of 6.29 at the moment, with a PEG ratio of 0.19. This compares to its industry's average P/E of 6.40 and average PEG ratio of 0.28.
OXY's Forward P/E has been as high as 213.02 and as low as -117.16, with a median of 10.86. During the same time period, its PEG ratio has been as high as 9.92, as low as -5.45, with a median of 0.29.
Occidental Petroleum sports a P/B ratio of 3.75 as well; this compares to its industry's price-to-book ratio of 1.99. In the past 52 weeks, OXY's P/B has been as high as 5.39, as low as 2.42, with a median of 3.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marathon Oil and Occidental Petroleum are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MRO and OXY feels like a great value stock at the moment.
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Is Marathon Oil (MRO) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Marathon Oil (MRO - Free Report) . MRO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.47, which compares to its industry's average of 6.40. Over the past 52 weeks, MRO's Forward P/E has been as high as 19.77 and as low as 4.26, with a median of 8.39.
Investors should also recognize that MRO has a P/B ratio of 1.35. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.99. Over the past 12 months, MRO's P/B has been as high as 2 and as low as 0.79, with a median of 1.29.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MRO has a P/S ratio of 2.45. This compares to its industry's average P/S of 3.04.
Finally, we should also recognize that MRO has a P/CF ratio of 3.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.18. Over the past 52 weeks, MRO's P/CF has been as high as 6.97 and as low as 3.65, with a median of 5.71.
Another great Oil and Gas - Integrated - United States stock you could consider is Occidental Petroleum (OXY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Occidental Petroleum is trading at a forward earnings multiple of 6.29 at the moment, with a PEG ratio of 0.19. This compares to its industry's average P/E of 6.40 and average PEG ratio of 0.28.
OXY's Forward P/E has been as high as 213.02 and as low as -117.16, with a median of 10.86. During the same time period, its PEG ratio has been as high as 9.92, as low as -5.45, with a median of 0.29.
Occidental Petroleum sports a P/B ratio of 3.75 as well; this compares to its industry's price-to-book ratio of 1.99. In the past 52 weeks, OXY's P/B has been as high as 5.39, as low as 2.42, with a median of 3.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marathon Oil and Occidental Petroleum are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MRO and OXY feels like a great value stock at the moment.