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Marathon Oil (MRO) Registers a Bigger Fall Than the Market: Important Facts to Note

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Marathon Oil (MRO - Free Report) closed at $27.10 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.

The the stock of energy company has risen by 13.43% in the past month, leading the Oils-Energy sector's gain of 4.9% and the S&P 500's gain of 5.34%.

Analysts and investors alike will be keeping a close eye on the performance of Marathon Oil in its upcoming earnings disclosure. On that day, Marathon Oil is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 17.91%. Our most recent consensus estimate is calling for quarterly revenue of $1.58 billion, down 5.9% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.44 per share and revenue of $6.58 billion, which would represent changes of -6.51% and -1.77%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.56% lower within the past month. Right now, Marathon Oil possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Marathon Oil is holding a Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 14.61, so one might conclude that Marathon Oil is trading at a discount comparatively.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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