Marathon Is In It To Win It (NYSE:MRO)

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The Chart of the Day belongs to the oil exploration and production company Marathon Oil (NYSE:MRO). I found the stock by using Barchart’s Top Stocks to Buy list then sorting for stocks having the highest Weighted Alpha, Technical Buy Signals and most frequent number of new highs in the last month. Since the Trend Spotter signaled a buy on 1/4 the stock gained 10.56%.

MRO Marathin Oil

Barchart.com

Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. It engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. It also owns and operates 32 central gathering and treating facilities; and the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in December 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas. – Yahoo Finance

Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 139.66+ Weighted Alpha
  • 124.57% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 17 new highs and up 28.26% in the last month
  • Relative Strength Index 71.80%
  • Technical support level at 18.92
  • Recently traded at 19.47 with a 50 day moving average of 16.48

Fundamental Factors:

  • Market Cap $15.16 billion
  • P/E 26.53
  • Dividend yield 1.29%
  • Revenue expected to grow 69.30% this year and another 7.60% next year
  • Earnings estimated to increase 211.20% this year, an additional 50.40% next year and continue to compound at an annual rate of 13.00% for the next 5 years

Analysts and Investor sentiment – I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:

  • Wall Street analysts issued 14 strong buy, 4 buy, 10 hold and 2 under perform opinions on the stock
  • The individual investors following the stock on Motley Fool voted 1,551 to 68 for the stock to beat the market with the more experienced investors voting 183 to 16 for the same result
  • 59,040 investors are monitoring the stock on Seeking Alpha
  • Seeking Alpha gives the stock a Quant rating of 4.92 out of 5

Factor Grades

Conclusion

Analysts are predicting solid growth in both Revenue and Earnings and it appears the individual investors agree. The price broke above its 200 day moving average on 11/19 and has been trading above that level for 421 consecutive trading days. Some analysts are predicting this stock could go as high as 29.00 per share.

The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

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