5-Star Stocks Poised to Pop: Marathon Oil

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy company Marathon Oil (NYS: MRO) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Marathon's business and see what CAPS investors are saying about the stock right now.

Marathon facts

Headquarters (founded)Houston (1887)
Market Cap$20 billion
IndustryOil and gas exploration and production
Trailing-12-Month Revenue$69.9 billion
ManagementChairman/CEO Clarence Cazalot Jr.
CFO Janet Clark
Return on Equity (average, past 3 years)7.6%
Cash/Debt$4.86 billion / $5.04 billion
Dividend Yield2.1%
CompetitorsChevron (NYS: CVX)
EOG Resources (NYS: EOG)
ExxonMobil (NYS: XOM)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,664 members who have rated Marathon believe the stock will outperform the S&P 500 going forward. These bulls include Wledley and callumturcan.

Just last month, Wledley tapped its sale ofMarathon Petroleum (NYS: MPC) as a tasty bargain opportunity: "Undervalued stock based on net asset value. Spinoff caused irrational sell off in market."

In fact, Marathon Oil sports a particularly paltry P/E of 6.6. That represents a discount to competitors such as Chevron (7.7), EOG (26.9), and Exxon (9.8).

CAPS member callumturcan elaborates on the Marathon bull case:

The split will increase productivity and efficiency as the separate companies can focus more on their respective business. The company is also poised to profit from the booming shale plays (Niobrara, Eagle Ford Shale, Bakken Shale) as they increase production and purchase up more land and from the rising cost of oil in general due to booming 3rd world economies and population growth. ... This stock should appreciate in price because not only is it undervalued, but it also has good growth potential.

What do you think about Marathon, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackMarathon?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners