Readers of this space know that oil/oil services has been a preferred sector. Given ramping demand in the developing world and oil's importance in a growing global economy, oil and oil services companies are likely to continue to experience steady demand for their services/products, and a provider worth a review is Marathon Oil.

Marathon Oil Corporation (NYSE: MRO) has what analysts like to see in an oil operation: a large/geographically-wide exploration footprint, very good production, and strong refining operations.

Further, that last tangible may be the most valuable, given the barely-adequate refinery capacity in the United States. What's more, the stock market's early 2008 sell-off has created a buying opportunity with Marathon. With a p/e of about 9, MRO's risk/return ratio is low. The Reuters FY 2008/FY 2009 EPS consensus estimates for MRO are $6.33 to $6.77.
The risks? Analysts are keeping an eye on MRO's costs, and on the development of oil substitutes. Gasoline refining margins may also narrow heading into early 2009, but unless there is a substantial increase in global oil production, or a comparable reduction in U.S. gasoline consumption, Marathon is well-positioned for the immediate years ahead.

The First Call mean rating for MRO is: Buy. [18 firms]. Mean 2008 target: $64.00 [high: $82, low: $47.00].

Stock Analysis: Marathon Oil is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from MRO's shares. Sell/Stop Loss if you were to purchase shares in this company: $39.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.