Marathon Oil Corp. shares rallied 1.98% to $11.34 Tuesday. This proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX rising 1.52% to 4,323.06 and the Dow Jones Industrial Average DJIA rising 1.62% to 34,511.99.
Marathon Oil Corp. closed $2.99 below its 52-week high ($14.33), which the company reached on July 1st. The stock outperformed some of its competitors Tuesday, as Exxon Mobil Corp. XOM rose 1.10% to $55.96, Chevron Corp. CVX rose 0.59% to $96.53, and Royal Dutch Shell PLC ADR Cl A RDS.A rose 0.19% to $37.15.
Marathon Oil Corp trading volume (13.7 M) remained 4.2 million below its 50-day average volume of 17.9 M.The stock’s rise snapped a five-day losing streak. Marathon Oil share price had more than doubled in just one year – up 120%. It’s also good to see the share price up 15% over the last quarter. On the other hand, longer-term shareholders have had a tougher run, with the stock falling 39% in three years.
Marathon Oil shrunk its revenue over the last year, with a reduction of 34%. We’re a little surprised to see the share price pop 120% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue to drop. Because Marathon Oil made a loss in the last twelve months, we think the market is probably more focused on revenue and revenue growth, at least for now.