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

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 higher today making it today's featured energy winner. The industry as a whole closed the day down 0.2%. By the end of trading, Marathon Oil rose 39 cents (1.2%) to $32.32 on average volume. Throughout the day, 5.5 million shares of Marathon Oil exchanged hands as compared to its average daily volume of six million shares. The stock ranged in a price between $31.57-$32.38 after having opened the day at $31.85 as compared to the previous trading day's close of $31.93. Other companies within the Energy industry that increased today were: Willbros Group ( WG), up 6.6%, Stone Energy Corporation ( SGY), up 5.7%, Barnwell Industries ( BRN), up 5.4%, and Hugoton Royalty ( HGT), up 5.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $22.65 billion and is part of the basic materials sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Marathon Oil a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Marathon Oil as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Gasco Energy ( GSX), down 22.1%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.7%, Cobalt International Energy ( CIE), down 7.1%, and Houston American Energy Corporation ( HUSA), down 7%, were all laggards within the energy industry with Anadarko Petroleum ( APC) being today's energy industry laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.