Marathon Stock Buy Hold or Sell Recommendation

MRO Stock  USD 28.31  0.45  1.56%   
Considering the 90-day investment horizon and your slightly conservative level of risk, our recommendation regarding Marathon Oil is 'Cautious Hold'. Macroaxis provides Marathon Oil buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MRO positions. The advice algorithm takes into account all of Marathon Oil's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Marathon Oil's buy-and-hold perspective. Additionally, see Marathon Oil Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Marathon and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Marathon Oil.

Execute Marathon Oil Buy or Sell Advice

The Marathon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Marathon Oil. Macroaxis does not own or have any residual interests in Marathon Oil or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Marathon Oil's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Marathon OilBuy Marathon Oil
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Marathon Oil has a Mean Deviation of 1.94, Semi Deviation of 2.63, Standard Deviation of 2.42, Variance of 5.85, Downside Variance of 7.18 and Semi Variance of 6.93
Our advice module complements current analysts and expert consensus on Marathon Oil. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Marathon Oil is not overpriced, please verify all Marathon Oil fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Marathon Oil has a price to book of 1.56 X, we recommend you to check Marathon Oil market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Marathon Oil Returns Distribution Density

The distribution of Marathon Oil's historical returns is an attempt to chart the uncertainty of Marathon Oil's future price movements. The chart of the probability distribution of Marathon Oil stock daily returns describes the distribution of returns around its average expected value. We use Marathon Oil price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Marathon Oil returns is essential to provide solid investment advice for Marathon Oil.
Mean Return0.0127Value At Risk-4.1
Potential Upside3.83Standard Deviation2.42
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Marathon Oil historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Marathon Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Marathon Oil is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Marathon Oil backward and forwards among themselves. Marathon Oil's institutional investor refers to the entity that pools money to purchase Marathon Oil's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares688.1 K15.5 M
Zweigdimenna Associates LlcCommon Shares959.2 K21.6 M
Zweigdimenna Associates LlcCommon Shares522.7 K13.1 M
Zweigdimenna Associates LlcCommon Shares495.2 K8.1 M
Zweigdimenna Associates LlcCommon Shares447.5 K6.1 M
Zweigdimenna Associates LlcCommon Shares401.2 K6.8 M
Zweigdimenna Associates LlcCommon Shares12.7 K150 K
Note, although Marathon Oil's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Marathon Oil Cash Flow Accounts

201820192020202120222023 (projected)
Capital Expenditure(2.75 B)(2.55 B)(1.34 B)(1.05 B)(1.2 B)(1.3 B)
Depreciation Amortization and Accretion2.44 B2.4 B2.32 B2.07 B1.86 B1.98 B
Net Cash Flow or Change in Cash and Cash Equivalents903 M(604 M)(116 M)(162 M)(186.3 M)(201.01 M)
Net Cash Flow Business Acquisitions and Disposals1.24 B(369 M)17 M(25 M)(28.75 M)(31.02 M)
Issuance Purchase of Equity Shares(713 M)(362 M)(92 M)(734 M)(660.6 M)(677.98 M)
Net Cash Flow from Financing(859 M)(535 M)(286 M)(2.39 B)(2.75 B)(2.82 B)
Net Cash Flow from Investing(1.47 B)(2.82 B)(1.3 B)(1.01 B)(909 M)(980.76 M)
Net Cash Flow from Operations3.23 B2.75 B1.47 B3.24 B3.72 B4.01 B
Share Based Compensation53 M60 M57 M40 M46 M53.66 M

Marathon Oil Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Marathon Oil or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Marathon Oil's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Marathon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.21
β
Beta against NYSE Composite1.20
σ
Overall volatility
2.50
Ir
Information ratio -0.07

Marathon Oil Volatility Alert

Marathon Oil currently demonstrates below-average downside deviation. It has Information Ratio of -0.07 and Jensen Alpha of -0.21. However, we advise investors to further question Marathon Oil expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marathon Oil's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marathon Oil's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Marathon Oil Implied Volatility

Marathon Oil's implied volatility exposes the market's sentiment of Marathon Oil stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Marathon Oil's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Marathon Oil stock will not fluctuate a lot when Marathon Oil's options are near their expiration.

Marathon Oil Fundamentals Vs Peers

Comparing Marathon Oil's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Marathon Oil's direct or indirect competition across all of the common fundamentals between Marathon Oil and the related equities. This way, we can detect undervalued stocks with similar characteristics as Marathon Oil or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Marathon Oil's fundamental indicators could also be used in its relative valuation, which is a method of valuing Marathon Oil by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Marathon Oil to competition
FundamentalsMarathon OilPeer Average
Return On Equity0.34 %(0.31) %
Return On Asset0.13 %(0.14) %
Profit Margin0.49 %(1.27) %
Operating Margin0.46 %(5.51) %
Current Valuation20.32 B16.62 B
Shares Outstanding635.07 M571.82 M
Shares Owned by Insiders0.15 %10.09 %
Shares Owned by Institutions79.74 %39.21 %
Number of Shares Shorted19.2 M4.71 M
Price to Earning5.88 X28.72 X
Price to Book1.56 X9.51 X
Price to Sales2.30 X11.42 X
Revenue5.6 B9.43 B
Gross Profit4.36 B27.38 B
EBITDA3.33 B3.9 B
Net Income946 M570.98 M
Cash and Equivalents580 M2.7 B
Cash per Share1.76 X5.01 X
Total Debt3.98 B5.32 B
Debt to Equity0.37 %48.70 %
Current Ratio1.08 X2.16 X
Book Value Per Share17.40 X1.93 K
Cash Flow from Operations3.24 B971.22 M
Short Ratio1.81 X4.00 X
Earnings Per Share5.21 X3.12 X
Price to Earnings To Growth0.40 X4.89 X
Target Price34.73
Number of Employees1.53 K18.84 K
Beta2.46-0.15
Market Capitalization18.26 B19.03 B
Total Asset16.99 B29.47 B
Retained Earnings9.85 B9.33 B
Working Capital820 M1.48 B
   Bona fide gift to Dane Whitehead of 3170 shares of Marathon Oil subject to Section 16 [view details]

Marathon Oil Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Marathon . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Marathon Oil Buy or Sell Advice

When is the right time to buy or sell Marathon Oil? Buying financial instruments such as Marathon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 2022 2023 (projected)
Receivables747 M1.14 B1.31 B1.75 B
Inventories76 M77 M88.55 M90.88 M

Use Investing Ideas to Build Portfolios

In addition to having Marathon Oil in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Millennials Best Thematic Idea Now

Millennials Best
Millennials Best Theme
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 66 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Millennials Best Theme or any other thematic opportunities.
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Additionally, see Marathon Oil Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Marathon Oil price analysis, check to measure Marathon Oil's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marathon Oil is operating at the current time. Most of Marathon Oil's value examination focuses on studying past and present price action to predict the probability of Marathon Oil's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Marathon Oil's price. Additionally, you may evaluate how the addition of Marathon Oil to your portfolios can decrease your overall portfolio volatility.
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Is Marathon Oil's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marathon Oil. If investors know Marathon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marathon Oil listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
4.302
Market Capitalization
18.3 B
Quarterly Revenue Growth
0.4
Return On Assets
0.1255
Return On Equity
0.3399
The market value of Marathon Oil is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Oil's value that differs from its market value or its book value, called intrinsic value, which is Marathon Oil's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marathon Oil's market value can be influenced by many factors that don't directly affect Marathon Oil's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marathon Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine Marathon Oil value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marathon Oil's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.