Marathon Oil Corp (MRO): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Marathon Oil ( MRO) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Marathon Oil fell 38 cents (-1.2%) to $30.69 on average volume. Throughout the day, 6.3 million shares of Marathon Oil exchanged hands as compared to its average daily volume of 7.2 million shares. The stock ranged in price between $30.59-$31.45 after having opened the day at $31.25 as compared to the previous trading day's close of $31.07. Other companies within the Energy industry that declined today were: Torch Energy Royalty ( TRU), down 10%, Syntroleum Corporation ( SYNM), down 7.1%, GeoPetro Resources Company ( GPR), down 6.4%, and Recon Technology ( RCON), down 6.3%.
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Marathon Oil Corporation operates as an energy company worldwide. The company operates in three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. Marathon Oil has a market cap of $21.93 billion and is part of the basic materials sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 6% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Marathon Oil a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Marathon Oil as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, Samson Oil & Gas ( SSN), up 15.8%, WSP Holdings ( WH), up 13.2%, Lone Pine Resources ( LPR), up 10.6%, and McMoRan Exploration ( MMR), up 8.7%, were all gainers within the energy industry with Halliburton Company ( HAL) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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