While other stocks within the energy sector tumbled along with the price of oil, Marathon's stock gained as Deutsche Bank sees an "attractive remaining upside" in some oil stocks, Barron's reports. Devon Energy (DVN), Pioneer Natural Resources (PDX) and ConocoPhillips (COP) were also included in the firm's list.
Investors are fighting with concerns over equity valuation, the pace of further recovery and the risk of oil incentivizing increased activity levels too soon, Deutsche Bank said, Barron's added.
"We take the opportunity to do a "heat check" of current valuations (relatively expensive, discounting ~$59/bbl), and although we expect quality to reassert itself in the near-term following recent weakness, we see attractive remaining upside at names with accelerating upside as the strip moves towards $60/bbl," Deutsche Bank continued.
Marathon Oil is a Houston-based energy company that explores for, produces and markets crude oil, condensate, NGLs and natural gas.
Additionally, oil prices fell today as investors are still concerned about the rising supply of oil, as it seems the two month rally is fading.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on Marathon Oil stock. This is driven by a number of negative factors, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
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.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MRO