Barbarian At The Gate: Murphy Oil (MUR) - TheStreet

Trade-Ideas LLC identified

Murphy Oil

(

MUR

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Murphy Oil as such a stock due to the following factors:

  • MUR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.9 million.
  • MUR has traded 660,238 shares today.
  • MUR traded in a range 230.6% of the normal price range with a price range of $2.71.
  • MUR traded above its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on MUR:

Murphy Oil Corporation operates as an oil and gas exploration and production company worldwide. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The stock currently has a dividend yield of 5.3%. MUR has a PE ratio of 8. Currently there are no analysts that rate Murphy Oil a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Murphy Oil has been 3.7 million shares per day over the past 30 days. Murphy Oil has a market cap of $4.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.37 and a short float of 7.2% with 3.42 days to cover. Shares are down 46.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Murphy Oil as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for MURPHY OIL CORP is rather high; currently it is at 65.69%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MUR's net profit margin of -10.27% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly decreased to $185.30 million or 74.39% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MURPHY OIL CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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