Marathon Oil (MRO) Outpaces Stock Market Gains: What You Should Know

Marathon Oil (MRO) closed the most recent trading day at $16.78, moving +1.21% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day.

Prior to today's trading, shares of the energy company had gained 29.03% over the past month. This has outpaced the Oils-Energy sector's gain of 13.33% and the S&P 500's gain of 3.46% in that time.

Investors will be hoping for strength from MRO as it approaches its next earnings release, which is expected to be November 3, 2021. The company is expected to report EPS of $0.32, up 214.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 74.22% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $5.06 billion, which would represent changes of +200% and +63.89%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MRO. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.63% higher. MRO currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, MRO is holding a Forward P/E ratio of 14.32. For comparison, its industry has an average Forward P/E of 16.2, which means MRO is trading at a discount to the group.

Investors should also note that MRO has a PEG ratio of 0.48 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. MRO's industry had an average PEG ratio of 1.28 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 38, which puts it in the top 15% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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