Marathon Oil (NYSE:MRO)

While we rarely have considered oil and gas companies for consideration in our portfolios MRO has grabbed our attention. The company reported 2010 first quarter EPS of $0.44 crushing estimates by 83.4%.  Comments indicating that expenses related to maintenance activities are now behind the company indicate that growth could accelerate going forward. Even before these results MRO was expected to report 2010 EPS of $3.14 followed by $4.81 in 2011 compared to $1.67 in 2009. We feel it is reasonable that the stock could trade at a P/E multiple of 15 on 2010 EPS estimates.
Monday, May 10, 2010