Marathon Oil (MRO) Dips More Than Broader Markets: What You Should Know

Marathon Oil (MRO) closed at $22.48 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's 0.88% loss on the day. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Heading into today, shares of the energy company had lost 27.37% over the past month, lagging the Oils-Energy sector's loss of 14.09% and the S&P 500's loss of 8.06% 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 August 3, 2022. On that day, Marathon Oil is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 490.91%. Meanwhile, our latest consensus estimate is calling for revenue of $2.05 billion, up 79.48% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.16 per share and revenue of $8.08 billion, which would represent changes of +228.66% and +47.72%, respectively, from the prior year.

Investors should also note any recent changes to 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 4.46% higher. Marathon Oil is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 4.42. This valuation marks a discount compared to its industry's average Forward P/E of 11.17.

Also, we should mention that MRO has a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.32 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 104, putting it in the top 42% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Marathon Oil Corporation (MRO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.