Marathon Oil (MRO) Lagging In Pre-Market Activity

Trade-Ideas LLC identified Marathon Oil (MRO) as a pre-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Marathon Oil

(

MRO

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Marathon Oil as such a stock due to the following factors:

  • MRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $223.4 million.
  • MRO traded 11,425 shares today in the pre-market hours as of 9:07 AM.
  • MRO is down 2% today from yesterday's close.

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More details on MRO:

Marathon Oil Corporation operates as an energy company. It operates in three segments: North America Exploration and Production, International Exploration and Production, and Oil Sands Mining. The stock currently has a dividend yield of 1.1%. Currently there are 9 analysts that rate Marathon Oil a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Marathon Oil has been 14.8 million shares per day over the past 30 days. Marathon Oil has a market cap of $12.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.63 and a short float of 4.5% with 1.58 days to cover. Shares are down 33.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marathon Oil as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 273.8% when compared to the same quarter one year ago, falling from $431.00 million to -$749.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 346.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • MARATHON OIL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MARATHON OIL CORP increased its bottom line by earning $1.41 versus $1.32 in the prior year. For the next year, the market is expecting a contraction of 197.2% in earnings (-$1.37 versus $1.41).
  • Along with the very weak revenue results, MRO underperformed when compared to the industry average of 37.2%. Since the same quarter one year prior, revenues plummeted by 51.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for MARATHON OIL CORP is rather high; currently it is at 54.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -54.11% is in-line with the industry average.

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