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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 $25.29, marking a +0.24% move from the previous day. This change outpaced the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the energy company had gained 13.39% over the past month, outpacing the Oils-Energy sector's gain of 3.85% and the S&P 500's gain of 3.43% in that time.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release, which is expected to be August 2, 2023. The company is expected to report EPS of $0.45, down 65.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, down 31.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.29 per share and revenue of $6.59 billion, which would represent changes of -48.88% and -17.99%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.86% lower. Marathon Oil currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 11. This valuation marks a discount compared to its industry's average Forward P/E of 14.75.
Meanwhile, MRO's PEG ratio is currently 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% 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.
You can find more information on all of these metrics, and much more, on 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 $25.29, marking a +0.24% move from the previous day. This change outpaced the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the energy company had gained 13.39% over the past month, outpacing the Oils-Energy sector's gain of 3.85% and the S&P 500's gain of 3.43% in that time.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release, which is expected to be August 2, 2023. The company is expected to report EPS of $0.45, down 65.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, down 31.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.29 per share and revenue of $6.59 billion, which would represent changes of -48.88% and -17.99%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.86% lower. Marathon Oil currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 11. This valuation marks a discount compared to its industry's average Forward P/E of 14.75.
Meanwhile, MRO's PEG ratio is currently 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.