Marathon Oil (MRO) closed at $18.57 in the latest trading session, marking a -0.75% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the energy company had gained 23.5% in the past month. In that same time, the Oils-Energy sector gained 8.29%, while the S&P 500 gained 0.39%.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release. In that report, analysts expect Marathon Oil to post earnings of $0.54 per share. This would mark year-over-year growth of 550%. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 91.6% from the prior-year quarter.
Any recent changes to analyst estimates for Marathon Oil should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 moved 5.79% lower. Marathon Oil is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Marathon Oil’s current valuation metrics, including its Forward P/E ratio of 8.77. This represents a discount compared to its industry’s average Forward P/E of 12.44.
Meanwhile, MRO’s PEG ratio is currently 0.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. MRO’s industry had an average PEG ratio of 0.39 as of yesterday’s close.
The Oil and Gas – Integrated – United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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