Here's Why Marathon Oil (MRO) is a Strong Momentum Stock

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Marathon Oil (MRO)

Incorporated in 2001, Houston, Texas-based Marathon Oil Corporation is a leading oil and natural gas exploration and production (‘E&P’) company with operations in the United States and Africa. As of the end of 2023, Marathon Oil had approximately 1,320 million oil-equivalent barrels in net proved reserves (73% crude oil/condensate and 62% proved developed), and 93% were located in the United States. In 2023, the company’s overall production from continuing operations was 405,000 net barrels of oil equivalent per day. Approximately 88% of Marathon Oil’s 2023 volumes came from the U.S.

MRO sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is up 10.8% and up 9.9% over the past one-week and four-week period, respectively, and Marathon Oil has gained 29.4% in the last one-year period as well. Additionally, an average of 9,813,336 shares were traded over the last 20 trading sessions.

Momentum investors also pay close attention to a company's earnings. For MRO, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.38 to $2.89 per share for 2024. MRO boasts an average earnings surprise of 10.1%.

MRO should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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