Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) 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 $180.1 million.
- MRO has traded 389,485 shares today.
- MRO is down 3.1% today.
- MRO was up 5.5% yesterday.
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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 13.6 million shares per day over the past 30 days. Marathon Oil has a market cap of $11.9 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 3.4% with 2.08 days to cover. Shares are down 34.6% year-to-date as of the close of trading on Tuesday.
rates Marathon Oil as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, 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.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MARATHON OIL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $496.00 million or 72.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.18%, 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 186.9% in earnings (-$1.23 versus $1.41).
- You can view the full Marathon Oil Ratings Report.