Marathon Oil Corporation (MRO) Stock Analysis

The Marathon Oil Corporation (MRO) is an oil and gas refining and marketing company that is in the business of exploration, development and production of crude oil, petroleum products, liquid hydrocarbons, natural gas and methanol on a worldwide basis.

Even after the recent downgrades of by two different analysts, today, Oppenheimer upgraded Marathon to outperform and seemed to be the catalyst for the stock to climb 2% today. Oppenheimer has given and stood by a $60 price target, which means they expect the stock to climb another 26% over the next year (Associated Press).

Through my own analysis I have determined that Marathon's EPS growth rate over the last 10 years is 30%. Their equity growth rate is 16% and their sales growth rate is 12%, all of which meet my criteria to analyze the stock and business further. My research has shown me a solid company with tons of growth potential and the desire to get there. With the current growth rates, my analysis shows that the future at over $600 (ten years) creating a current value of $160. This means, through my analysis that the stock is a buy at anything below $80. At its current price of $48.50, the opportunity for significant gains is present.

Yahoo!Finance reports that Marathon's corporate governance is better than 95% of companies in the energy sector, creating a transparent company for the investors. According to Marathon's website, CEO Clarence Cazalot has more than 30 years experience in the oil industry working for multiple companies including Texaco and Frontier. He serves on the Board of Directors of Baker Hughes, the US-Saudi Arabian Business Council, the American Petroleum Institute and The national Association of Manufacturers and that Marathon is committed to and focused on "sustainable value growth" which includes growth projects planned past 2012.