Murphy Oil Corporation (MUR) Ready To Tore A Hole Through The Roof

After opening Thursday at around $30.61, Murphy Oil Corporation (NYSE:MUR) stock surged to as high as $30.89. It then made a downturn, dipping as low as $30.1. Although the stock bounced a bit into the close, it finished the day at $30.12, down -0.52 points or -1.7 percent on the day. The final volume for the day was 1.874 million, which was less than its average volume. The firm is left with a market cap of $5.39 billion and now has 179.03 million shares outstanding. Murphy Oil Corporation (MUR) stock has gained 10.13 percent of market value in 21 trading days.

MUR stock has a trailing 3-year beta of 2.19, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.6 a share in the trailing twelve months. The stock’s value has surged 28.77 percent year to date (YTD) against a rise of 17.43 percent in 12 month’s time. The company’s shares still trade -17.54 percent away from its 1-year high of $36.53 and 40.03 percent up from 52-week low of $21.51. The average consensus rating on the company is 3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Murphy Oil Corporation (MUR) will probably climb 4.12 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39-month high price target. This represents a whopping 29.48 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $31, which represents a return potential of 2.92 percent when compared to the closing price of the stock of $30.12 on Thursday, March 14. The lowest price target for the stock is $19 — slightly more than -36.92 percent from MUR’s current share price.

History has shown that shares in Murphy Oil Corporation have gone down on 23 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of MUR’s Q1 earnings on May 01. Analysts are forecasting revenue to climb 23.7 percent to $724M in the fiscal first quarter, while earnings are seen soaring by nearly -13.04 percent to $0.2 per share. It earned $0.31 per share, better than the $0.28, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $692M, better than the $649M analysts expected. Earnings are estimated to increase by 847.9 percent this year, 25.18 percent next year and continue to increase by 27.81 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $29.85. Below this, the next support is placed in the zone of $29.58. Till the time, the MUR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 57.74 on daily chart, which may remain a cause for concern. If the price breaks below $29.58 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $30.64 mark may result into a pull-back move towards $31.16 level.

Shares of Murphy Oil Corporation (MUR) are trading at a P/E ratio of 19.14 times earnings reported for the past 12 months. The industry MUR operates in has an average P/E of 4.75. Its P/E ratio went as low as 8.88X and as high as 14.61 over the 5-year span.Further, it is sporting a 2.12 on the Price-to-Sales ratio. Compare this with the industry average P/S of 81.54. 78.2 percent is the gross profit margin for Murphy Oil Corporation and operating margin sits at 24.7 percent. Along with this, the net profit margin is 16.2 percent.