Marathon Oil (MRO) closed at $25.76 in the latest trading session, marking a -0.66% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the energy company had gained 5.19% in the past month. In that same time, the Oils-Energy sector lost 1.89%, while the S&P 500 lost 7.59%.
Investors will be hoping for strength from Marathon Oil as it approaches its next earnings release. On that day, Marathon Oil is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 217.95%. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 48.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $8.36 billion, which would represent changes of +206.37% and +52.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.95% lower 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 5.39. For comparison, its industry has an average Forward P/E of 10.56, which means Marathon Oil is trading at a discount to the group.
Investors should also note that MRO has a PEG ratio of 0.37 right now. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.37 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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