In the latest trading session, Marathon Oil (MRO) closed at $23.55, marking a -1.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.
Heading into today, shares of the energy company had gained 6.59% over the past month, outpacing the Oils-Energy sector's gain of 2.63% and the S&P 500's gain of 3.98% 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 $0.58, down 56.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, down 28.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.71 per share and revenue of $6.9 billion. These totals would mark changes of -39.51% and -14.14%, respectively, from last year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 6.19% lower. 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 8.82. Its industry sports an average Forward P/E of 13.52, so we one might conclude that Marathon Oil is trading at a discount comparatively.
Investors should also note that MRO has a PEG ratio of 0.45 right now. 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 industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 107, putting it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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