In the latest trading session, Marathon Oil (MRO) closed at $26.29, marking a -1.2% move from the previous day. This change was narrower than the S&P 500's 1.47% loss on the day. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Prior to today's trading, shares of the energy company had gained 2.66% over the past month. This has lagged the Oils-Energy sector's gain of 4.06% and outpaced the S&P 500's loss of 1.43% in that time.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release. The company is expected to report EPS of $0.63, down 49.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, down 25.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $6.58 billion, which would represent changes of -43.97% and -18.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Marathon Oil. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 5.24% higher within the past month. Marathon Oil currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Marathon Oil is holding a Forward P/E ratio of 10.61. This represents a discount compared to its industry's average Forward P/E of 15.83.
Meanwhile, MRO's PEG ratio is currently 0.54. 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 0.77 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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