Marathon Oil Corporation (NYSE:MRO) a would-be hot stock for investors


Marathon Oil Corporation (NYSE:MRO) returns are not looking too positive for the current quarter. Ever since the company’s spinoff back in June 2011, they have been limping forward, rising by mere 7.5 percent as compared to the S&P 500’s 43 percent gain.

There are still a number of reasons why Marathon Oil Corporation (NYSE:MRO) might become a sort after brand. The investors should still be enthusiastic about financing in the company, because in the long run Marathon Oil Corporation (NYSE:MRO) is expected to grow. Marathon Oil Corporation (NYSE:MRO) boasts global assets. It is currently working on acquired ventures, in order to gain maximum profit; rather chase after numerous businesses. Marathon Oil Corporation (NYSE:MRO) made a $2.7 billion deal with a Norwegian company; in Angola. The company closed its assets worth $2 billion and also got an additional $576 million after-tax.

Marathon Oil Corporation (NYSE:MRO) is emphasizing on increasing production rather than simply move on to new projects. The shareholders will be pleased with this development, as emphasis on single operation results in steady costs and returns. Marathon Oil Corporation (NYSE:MRO)’s net sales grew up to 30 percent from Eagle Ford in the first half of 2014, which is an improvement from last year sales. From Bakken they got similar gains, amounting up to 21 percent while SCOOP gave them 31 percent. The reason Marathon Oil Corporation (NYSE:MRO) is focusing on organic replacement is because the $60 million production growth in the North America E&P was largely based on organic replacement.

Marathon Oil Corporation (NYSE:MRO)’s stock is not in a favourable state, when compared with other companies. It’s also displaying disappointing numbers as far as free cash flow per share is concerned. But Marathon Oil Corporation (NYSE:MRO)’s focus on increasing production is highly favourable, as an increased production results in enhanced sales.  Organic replacement will surely bring them the market which they have been trying to enter.

The Oil Boom 2.0 is in active business, and Marathon Oil Corporation (NYSE:MRO) being a surging oil company will benefit from it the most. It’s being reported that this boom will amount to $5.8 trillion. Considering this, investors seem quite interested in taking a fair share of the Marathon Oil Corporation (NYSE:MRO) investment pie.

Marathon Oil Corporation (NYSE:MRO) must also work to increase their share price. The increase in production should get them a healthy market and improve their situation in the market. There haven’t been any significance losses; however, their growth rate is quite stagnant.

Hopefully, Marathon Oil Corporation (NYSE:MRO) will look in to this matter, as oil and petroleum industry is heaving and investors are usually quite wary of the way stocks are presented. If they see that the growth rate is mellow, the investment rate falls significantly. Investors are not usually interested in stocks that are expected to give them return at a slower pace. Marathon Oil Corporation (NYSE:MRO) will need to improve strategies to enhance sales and revenues in order to interest investors and improve the performance of its stock.