You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Earnings Estimates Moving Higher for Murphy Oil (MUR): Time to Buy?
Murphy Oil (MUR - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this oil and gas producer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Murphy Oil, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $1.63 per share for the current quarter, which represents a year-over-year change of +579.17%.
Over the last 30 days, three estimates have moved higher for Murphy Oil while two have gone lower. As a result, the Zacks Consensus Estimate has increased 6.73%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $6.14 per share, representing a year-over-year change of +375.97%.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Murphy Oil versus no negative revisions. This has pushed the consensus estimate 17.8% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Murphy Oil earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
While strong estimate revisions for Murphy Oil have attracted decent investments and pushed the stock 20.1% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.