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Marathon Oil (MRO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Marathon Oil (MRO - Free Report) closed at $23.64, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.
Heading into today, shares of the energy company had lost 7.48% over the past month, lagging the Oils-Energy sector's loss of 4.02% and the S&P 500's gain of 0.27% in that time.
Marathon Oil will be looking to display strength as it nears its next earnings release. On that day, Marathon Oil is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 32.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.73 billion, down 1.22% from the year-ago period.
MRO's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $7.17 billion. These results would represent year-over-year changes of -26.56% and -10.73%, respectively.
It is also important to note the recent changes to analyst estimates for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 9.16% lower. Marathon Oil currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 7.06. For comparison, its industry has an average Forward P/E of 10.75, which means Marathon Oil is trading at a discount to the group.
It is also worth noting that MRO currently 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.46 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.
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Marathon Oil (MRO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Marathon Oil (MRO - Free Report) closed at $23.64, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.
Heading into today, shares of the energy company had lost 7.48% over the past month, lagging the Oils-Energy sector's loss of 4.02% and the S&P 500's gain of 0.27% in that time.
Marathon Oil will be looking to display strength as it nears its next earnings release. On that day, Marathon Oil is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 32.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.73 billion, down 1.22% from the year-ago period.
MRO's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $7.17 billion. These results would represent year-over-year changes of -26.56% and -10.73%, respectively.
It is also important to note the recent changes to analyst estimates for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 9.16% lower. Marathon Oil currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 7.06. For comparison, its industry has an average Forward P/E of 10.75, which means Marathon Oil is trading at a discount to the group.
It is also worth noting that MRO currently 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.46 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.