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Here's Why Marathon Oil (MRO) Fell More Than Broader Market
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Marathon Oil (MRO - Free Report) closed the latest trading day at $22.32, indicating a -0.62% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.
The energy company's shares have seen a decrease of 7.91% over the last month, not keeping up with the Oils-Energy sector's loss of 2.12% and the S&P 500's gain of 4.59%.
Investors will be eagerly watching for the performance of Marathon Oil in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 21, 2024. On that day, Marathon Oil is projected to report earnings of $0.62 per share, which would represent a year-over-year decline of 29.55%. Alongside, our most recent consensus estimate is anticipating revenue of $1.66 billion, indicating a 4.29% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. The Zacks Consensus EPS estimate has moved 25.62% lower within the past month. Currently, Marathon Oil is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Marathon Oil is at present trading with a Forward P/E ratio of 8.61. This signifies a discount in comparison to the average Forward P/E of 12.56 for its industry.
One should further note that MRO currently holds a PEG ratio of 0.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - United States industry stood at 0.52 at the close of the market yesterday.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Marathon Oil (MRO) Fell More Than Broader Market
Marathon Oil (MRO - Free Report) closed the latest trading day at $22.32, indicating a -0.62% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.
The energy company's shares have seen a decrease of 7.91% over the last month, not keeping up with the Oils-Energy sector's loss of 2.12% and the S&P 500's gain of 4.59%.
Investors will be eagerly watching for the performance of Marathon Oil in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 21, 2024. On that day, Marathon Oil is projected to report earnings of $0.62 per share, which would represent a year-over-year decline of 29.55%. Alongside, our most recent consensus estimate is anticipating revenue of $1.66 billion, indicating a 4.29% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. The Zacks Consensus EPS estimate has moved 25.62% lower within the past month. Currently, Marathon Oil is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Marathon Oil is at present trading with a Forward P/E ratio of 8.61. This signifies a discount in comparison to the average Forward P/E of 12.56 for its industry.
One should further note that MRO currently holds a PEG ratio of 0.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - United States industry stood at 0.52 at the close of the market yesterday.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.