Yahoo Finance Marathon Oil (MRO) Gains But Lags Market: What You Should Know
Marathon Oil (MRO) closed at $23.48 in the latest trading session, marking a +0.82% move from the prior day. This change lagged the S&P 500's 1.96% gain on the day. Elsewhere, the Dow gained 1.57%, while the tech-heavy Nasdaq lost 3.03%.
Heading into today, shares of the energy company had lost 1.48% over the past month, lagging the Oils-Energy sector's gain of 6.43% and the S&P 500's gain of 2.19% in that time.
Wall Street will be looking for positivity from Marathon Oil as it approaches its next earnings report date. This is expected to be May 3, 2023. On that day, Marathon Oil is projected to report earnings of $0.60 per share, which would represent a year-over-year decline of 41.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, down 6.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.94 per share and revenue of $6.98 billion. These totals would mark changes of -34.38% and -13.11%, respectively, from last year.
It is also important to note the recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 8.36% lower. Marathon Oil is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Marathon Oil is holding a Forward P/E ratio of 7.93. For comparison, its industry has an average Forward P/E of 10.38, which means Marathon Oil is trading at a discount to the group.
We can also see that MRO currently has a PEG ratio of 0.4. 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. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.51 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.
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Marathon Oil Corporation (MRO) : Free Stock Analysis Report
