In the latest trading session, Marathon Oil (MRO) closed at $19.84, marking a -0.05% move from the previous day. This move lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the energy company had gained 21.41% in the past month. In that same time, the Oils-Energy sector gained 9.72%, while the S&P 500 lost 9.65%.
Wall Street will be looking for positivity from Marathon Oil as it approaches its next earnings report date. This is expected to be February 16, 2022. In that report, analysts expect Marathon Oil to post earnings of $0.55 per share. This would mark year-over-year growth of 558.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.59 billion, up 91.87% from the year-ago period.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 9.66% higher. Marathon Oil is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Marathon Oil is holding a Forward P/E ratio of 7.99. Its industry sports an average Forward P/E of 11.02, so we one might conclude that Marathon Oil is trading at a discount comparatively.
Also, we should mention that MRO has a PEG ratio of 0.56. 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. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow MRO in the coming trading sessions, be sure to utilize Zacks.com.
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