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Marathon Oil (MRO) Dips More Than Broader Markets: What You Should Know

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Marathon Oil (MRO - Free Report) closed the most recent trading day at $25.79, moving -0.92% from the previous trading session. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.67%.

Heading into today, shares of the energy company had lost 2.14% over the past month, lagging the Oils-Energy sector's gain of 3.44% and the S&P 500's gain of 8.32% in that time.

Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release, which is expected to be February 15, 2023. The company is expected to report EPS of $0.87, up 12.99% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, down 2.54% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Marathon Oil. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.82% lower. Marathon Oil is currently a Zacks Rank #3 (Hold).

Investors should also note Marathon Oil's current valuation metrics, including its Forward P/E ratio of 7.08. For comparison, its industry has an average Forward P/E of 11.83, which means Marathon Oil is trading at a discount to the group.

Also, we should mention that MRO has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRO's industry had an average PEG ratio of 0.45 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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