Marathon Oil Corporation (MRO) and Transocean LTD (RIG) are among the oil stocks on fire after earnings
On the back of upbeat earnings,
oil stocks are soaring today. Among the major winners so far within the commodities sector are gas giant
Marathon Oil Corporation (NYSE:MRO) and drilling dynamo
Transocean LTD (NYSE:RIG). Below, we'll take a closer look at MRO and RIG, as well as the earnings results propelling them higher.
At last check, Marathon Oil shares have shot 13.4% higher to trade at $14.49. Last night, the oil company reported a narrower-than-expected quarterly loss, and announced plans to
increase its rig count by 50%, catalyzing the stock's ascent this morning. In fact, since its mid-February 13-year lows, MRO has boomed 122%.
Today's gain should please bullish options bettors at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, Marathon Oil Corporation has racked up a 10-day call/put volume ratio of 2.70 -- outstripping 70% of all readings from the past year. In other words, speculators have bought to open calls over puts at a much faster-than-usual clip in recent weeks.
Turning to RIG, the stock is up 9.2% at $10.16, after the firm posted an earnings beat -- despite a
nearly 50% drop in revenue (subscription required). Adding fuel to the fire, Canaccord Genuity raised its rating to "buy" from "hold," and bumped its price target by $2 to $11 -- territory not explored since early August.
While Transocean stock is up big this morning, it remains lower on a longer-term basis. Year-to-date, the shares have shed roughly 18% of their value, while their year-over-year losses are approaching 40%.
Not surprisingly, the Street is stacked against Transocean LTD. Nineteen of 22 covering analysts rate the shares either a "hold" or a "strong sell." Along similar lines, over 27% of the stock's float is sold short, which would take seven sessions to cover, at RIG's typical trading volume.
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