In the latest trading session, Marathon Oil (MRO - Free Report) closed at $13.24, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily gain of 0.19%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the energy company had lost 0.67% in the past month. In that same time, the Oils-Energy sector gained 4.35%, while the S&P 500 gained 3.72%.
MRO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.08, down 46.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.27 billion, down 28.32% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MRO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 29.57% higher. MRO currently has a Zacks Rank of #2 (Buy).
Investors should also note MRO's current valuation metrics, including its Forward P/E ratio of 41.66. This valuation marks a premium compared to its industry's average Forward P/E of 19.6.
Also, we should mention that MRO has a PEG ratio of 5.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 3.24 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.