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

Marathon Oil (MRO) closed at $23.95 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.

Prior to today's trading, shares of the energy company had gained 7.23% over the past month. This has outpaced the Oils-Energy sector's gain of 2.66% and the S&P 500's gain of 3.44% in that time.

Wall Street will be looking for positivity from Marathon Oil as it approaches its next earnings report date. In that report, analysts expect Marathon Oil to post earnings of $0.58 per share. This would mark a year-over-year decline of 56.06%. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, down 28.52% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.71 per share and revenue of $6.9 billion, which would represent changes of -39.51% and -14.14%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Marathon Oil. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.19% lower within the past month. Marathon Oil is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Marathon Oil is currently trading at a Forward P/E ratio of 8.96. Its industry sports an average Forward P/E of 13.57, so we one might conclude that Marathon Oil is trading at a discount comparatively.

We can also see that MRO currently has a PEG ratio of 0.45. 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. MRO's industry had an average PEG ratio of 0.96 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 113, putting it in the top 45% 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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Marathon Oil Corporation (MRO) : Free Stock Analysis Report

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