Marathon Oil is a strong buy at $24 as the sector remains strong

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Jun 21, 2022
  • Marathon Oil is an integrated oil and gas company majoring in exploration, production, and transportation.
  • The stock’s valuation will maintain a strong correlation to the prices of oil and gas.
  • The stock is projected to gain from $24 to $32 as it retraces its value.

Marathon Oil Corporation (NYSE:MRO) is trading at $24.15. This comes after the stock declined 20.27% last week on the confirmation of the bear markets. The decline also marked three consecutive weeks of downward pressure on the price. This analysis considers that Marathon Oil is near the bottom.

Marathon Oil is an integrated oil and gas company in upstream and midstream activities. Prices of stocks in this segment are correlated with oil prices. As the prices are expected to remain high in the foreseeable future, the stock will remain robust.

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Fundamental analysis shows the EPS at $2.88 and the forward PE at 8.93. That makes Marathon Oil a company with some of the lowest PE values in the industry. The analysis also shows that the company expects a 14% growth rate in earnings. The PEG ratio is 0.33. Marathon Oil has a dividend yield of 1.08%.

We think Marathon Oil is a good investment for value, growth, and momentum. The stock is highly discounted at $24. It can be expected that Marathon Oil will retrace its value to the resistance of $31.

Marathon Oil will gain to $31 before finding new highs

Source – TradingView

Marathon Oil faced resistance at $31 before last week’s decline. With a decline of 20% in one week, the analysis projects that Marathon Oil is near the bottom. From this level, the stock is likely to retrace its value. It is likely to gain to $32 in the first bull run. After that, the stock will move to establish a new high.

Summary

Marathon Oil Corporation is a buy as the oil and gas sector remains robust. Despite declining 20% last week, the stock is a buy. Marathon Oil will retrace its value to $32 before moving to find a new high.

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