Alphanso’s AI Stock Research picked MRO as one of the top stocks of the year.
Alphanso rating: 9/10
Return potential: 23%
This pick stands out because in the current high oil prices environment, energy stocks are poised to outperform and $MRO has strong fundamentals
Fundamental Metrics:
- The free-cash-flow yield of 16% trading at 10.1 PE (fwd) indicates the company’s ability to generate cash flows making it a very sustainable business trading at a relatively low price.
- Operating margin of 37.7% vs. sector median 24.3% and EBITDA margin of 68.1% vs. sector median of 38.7% suggests strong pricing power and economies of scale
- It is an attractive E&P company and a significant U.S. E&P producer, with 89.2% of the total oil equivalent production in 2Q23 coming from the USA (with 51.8% oil). It provides solid support for the company’s long-term outlook.
- $MRO has beaten earning expectations 67% of the time in the last 15 years
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $ 30.82 – $32.2
