In the latest trading session, Marathon Oil (MRO Quick QuoteMRO – Free Report) closed at $28.45, marking a +1.35% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
The energy company’s shares have seen an increase of 4.43% over the last month, surpassing the Oils-Energy sector’s loss of 0.77% and the S&P 500’s loss of 3%.
The upcoming earnings release of Marathon Oil will be of great interest to investors. The company’s earnings report is expected on November 1, 2023. The company’s upcoming EPS is projected at $0.68, signifying a 45.16% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.72 billion, down 23.37% from the prior-year quarter.
MRO’s full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $6.7 billion. These results would represent year-over-year changes of -40.18% and -16.65%, respectively.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Marathon Oil. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10.39% higher. As of now, Marathon Oil holds a Zacks Rank of #2 (Buy).
Investors should also note Marathon Oil’s current valuation metrics, including its Forward P/E ratio of 10.48. This indicates a discount in contrast to its industry’s Forward P/E of 15.54.
It’s also important to note that MRO currently trades at a PEG ratio of 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Oil and Gas – Integrated – United States stocks are, on average, holding a PEG ratio of 0.75 based on yesterday’s closing prices.
The Oil and Gas – Integrated – United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.