5 Most Undervalued Value Stocks To Buy Now

In this article, we will look at the 5 most undervalued value stocks to buy now. If you want to explore similar stocks, you can read 10 Most Undervalued Value Stocks To Buy Now.

5. Marathon Oil Corporation (NYSE:MRO)

PE Ratio as of October 21 (TTM): 6.86

Number of Hedge Fund Holders: 41

Marathon Oil Corporation (NYSE:MRO) is an American petroleum and natural gas exploration and production company headquartered in Houston, Texas. The company is one of the largest oil and gas producers in the United States. Marathon Oil Corporation (NYSE:MRO) is a well-run company with a strong balance sheet and a disciplined approach to capital expenditure. The company is well-positioned to generate significant cash flow and returns for shareholders in the coming years. Marathon Oil Corporation (NYSE:MRO) has free cash flows of $3.45 billion and a trailing twelve-month operating margin of 39.85%.

Shares of Marathon Oil Corporation (NYSE:MRO) have pulled back and are trading at bargain levels. As of October 20, the stock is trading at a PE multiple of 6x and is awarding shareholders with a forward dividend yield of 1.13%. Marathon Oil Corporation (NYSE:MRO) is ranked high among the best undervalued stocks to buy now.

On October 18, Piper Sandler analyst Mark Lear raised his price target on Marathon Oil Corporation (NYSE:MRO) to $38 from $36 and maintained an Overweight rating on the shares.

At the end of Q2 2022, Marathon Oil Corporation (NYSE:MRO) was spotted on 41 hedge fund portfolios. These funds held collective stakes of $1.26 billion in the company. As of June 30, Fisher Asset Management is the most prominent investor in Marathon Oil Corporation (NYSE:MRO) and has stakes worth over $194 million in the company.

Here is what Carillon Tower Advisers had to say about Marathon Oil Corporation (NYSE:MRO) in its “Carillon Clarivest Capital Appreciation Fund” first-quarter 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”