Marathon Oil Corporation (MRO), headquartered in Houston, Texas, is an independent energy company specializing in exploring, producing, and developing oil and natural gas resources. With a market cap of $15.08 billion, Marathon Oil focuses on delivering sustainable energy solutions to meet global demand, serving various industries with a strong emphasis on operational efficiency and environmental stewardship.
Companies valued at $10 billion or more are typically categorized as "large-cap stocks," and Marathon Oil rightly fits into this category. With a strong presence in global markets, the company is recognized for its leadership in delivering energy solutions that power various industries worldwide.
MRO shares are trading 13.9% below their 52-week high of $30.06, which they hit on Apr. 12. The stock has declined 9.2% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has gained 2.2% over the same time frame.
In the longer term, MRO is up 7.1% on a YTD basis. However, the shares have declined 1.6% over the past 52 weeks. In comparison, the Nasdaq has gained 21.2% in 2024 and rallied 39.2% over the past year.
MRO has been trading below its 50-day moving average since late September to confirm its bearish trend. Also, it has been trading below its 50-day moving since early September, with some fluctuations.
On Sep. 26, Marathon Oil closed down more than 3% after a decline in WTI crude oil prices.
Marathon Oil reported Q2 earnings on Aug. 7. The stock gained marginally on the day it released earnings. The company reported net revenues of $1.71 billion, an increase from $1.51 billion in the same quarter last year. Net income applicable to MRO rose to $349 million, or $0.63 per diluted share, compared to $287 million, or $0.48 per diluted share in the year-ago quarter.
Highlighting the contrast in performance, MRO's competitor, APA Corporation (APA), has underperformed the stock. APA has declined 35.5% on a YTD basis.
Analysts are moderately bullish about MRO's prospects despite its weak price performance. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target is $32.53, suggesting a premium of 25.7% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
