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Marathon Oil (MRO) Declines More Than Market: Some Information for Investors

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In the latest market close, Marathon Oil (MRO - Free Report) reached $27.30, with a -1.37% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.12%.

The energy company's shares have seen an increase of 5.93% over the last month, surpassing the Oils-Energy sector's loss of 6.02% and the S&P 500's gain of 4.15%.

The investment community will be paying close attention to the earnings performance of Marathon Oil in its upcoming release. The company's upcoming EPS is projected at $0.72, signifying a 50% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 14.53% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.83 per share and a revenue of $6.9 billion, representing changes of +8.43% and +3.01%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.11% downward. Marathon Oil currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Marathon Oil is currently exchanging hands at a Forward P/E ratio of 9.78. This represents a discount compared to its industry's average Forward P/E of 15.39.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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