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Marathon Oil (MRO) Gains But Lags Market: What You Should Know
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In the latest trading session, Marathon Oil (MRO - Free Report) closed at $26.78, marking a +0.75% move from the previous day. This change lagged the S&P 500's 1.75% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Prior to today's trading, shares of the energy company had lost 13.22% over the past month. This has lagged the Oils-Energy sector's loss of 3.11% and the S&P 500's loss of 4.4% in that time.
Marathon Oil will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.97, up 25.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 0.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.56 per share and revenue of $8.14 billion, which would represent changes of +190.45% and +48.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marathon Oil. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.65% lower. Marathon Oil is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Marathon Oil currently has a Forward P/E ratio of 5.83. Its industry sports an average Forward P/E of 8.18, so we one might conclude that Marathon Oil is trading at a discount comparatively.
Also, we should mention that MRO has a PEG ratio of 0.48. 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 was holding an average PEG ratio of 0.48 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Marathon Oil (MRO) Gains But Lags Market: What You Should Know
In the latest trading session, Marathon Oil (MRO - Free Report) closed at $26.78, marking a +0.75% move from the previous day. This change lagged the S&P 500's 1.75% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Prior to today's trading, shares of the energy company had lost 13.22% over the past month. This has lagged the Oils-Energy sector's loss of 3.11% and the S&P 500's loss of 4.4% in that time.
Marathon Oil will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.97, up 25.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 0.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.56 per share and revenue of $8.14 billion, which would represent changes of +190.45% and +48.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marathon Oil. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.65% lower. Marathon Oil is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Marathon Oil currently has a Forward P/E ratio of 5.83. Its industry sports an average Forward P/E of 8.18, so we one might conclude that Marathon Oil is trading at a discount comparatively.
Also, we should mention that MRO has a PEG ratio of 0.48. 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 was holding an average PEG ratio of 0.48 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.