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Marathon Oil (MRO) Stock Sinks As Market Gains: What You Should Know

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The latest trading session saw Marathon Oil (MRO - Free Report) ending at $28.35, denoting a -1.46% adjustment from its last day's close. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 0.12%.

Shares of the energy company witnessed a gain of 8.2% over the previous month, beating the performance of the Oils-Energy sector with its gain of 4.4% and the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Marathon Oil in its upcoming release. The company is slated to reveal its earnings on May 1, 2024. The company is expected to report EPS of $0.56, down 16.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, down 5.48% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $6.62 billion, demonstrating changes of +0.38% and -1.14%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 7.91% higher. Marathon Oil presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Marathon Oil currently has a Forward P/E ratio of 10.99. For comparison, its industry has an average Forward P/E of 15.21, which means Marathon Oil is trading at a discount to the group.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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