Marathon Oil Corp. (NYSE: MRO) stocks have been under the radar for a long time. But recent reports on the stock’s performance shows some promising improvement of fundamentals. The big question for investors is: is this stock a buy right now?
It is true that MRO stocks have taken the toll of the coronavirus pandemic as like many other stocks. The depression and the global decline in economic growth stunted its growth since the first fiscal quarter of this year. As evident from the performance of other petroleum-based companies like Exxon Mobil (XOM), BP, and Royal Dutch Shell (RDS.A and RDS.B), the impact of the pandemic on the financial sector, especially the oil industry was major. This happened especially because international travel was banned and travel in total was almost put to halt for many months since the beginning of 2020.
Despite Covid-Crisis, MRO Stocks Show Strong Fundamentals
But the plight of the oil industry has been going on before the beginning of this crisis period. Despite these difficulties, the industry is now showing signs of breathing after news about the upcoming vaccines and the roll-out of the Pfizer vaccine came into the picture. MRO stocks has been on a bullish trend since October when the possibility of a Covid-19 vaccine by the end of this year or early 2021 started circulating.
Marathon Oil stock price has moved up from $4.14 EPS to $6.79 EPS since October. The company’s market capitalization has also increased to $5.4 billion. Equities analysts are of the opinion that MRO stocks have just started to rise. This comes after investors began to question if the rise of Marathon Oil stock value was temporary or they will continue well into the next year. According to recent stock metrics, 2021 is likely to be a year of growth for MRO stocks.