Back in September 2017, I picked seven beaten-down stocks to buy. I did so after reading a blog post from Ben Carlson, one of the best financial bloggers in the country. The problem with selecting beaten-down or penny stocks to buy is that they often come with a lot of baggage. Baggage that's not necessarily going to disappear overnight. "When dumpster diving for beaten-down shares, you must be able to understand how far divorced fundamentals have become from investor expectations," Carlson wrote in 2017. "While there were bargains galore in early 2009, late 2011 and even early 2016, if you want to find value in these markets, you have to go dumpster diving."InvestorPlace – Stock Market News, Stock Advice & Trading TipsWell, of the seven stocks on my list, only one, Kroger (NYSE:KR), is higher today than it was in September 2017. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure The glutton for punishment that I am, I've decided to go back to the dumpster to find 10 penny stocks to buy trading under $5 as I write this. Hopefully, I'll do a little better this time around. Penny Stocks to Buy: Banco BBVA Argentina (BBAR)Source: Shutterstock Market Cap: $765.9 million Price-to-Book: 0.62Banco Bbva Argentina (NYSE:BBAR), as its name suggests, is a financial services company based in Buenos Aires, Argentina. It has operated in Argentina since 1886. Its American Depositary Shares have been traded on the NYSE since 1993. It is the fourth-largest privately-owned bank in Argentina with 7.7% of the country's total banking system loans on a consolidated basis. At the end of 2019, it had 454 billion Argentine pesos in total assets on its balance sheet. Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) is a Spanish bank. It owns 66% of the Argentinian bank. Bank of New York Mellon (NYSE:BNY) is also a large shareholder with 18% of BBVA's stock.In 2019, it made 16 billion pesos on 88 billion pesos in revenue. That revenue is up significantly from 49 billion pesos in 2017. However, investing in Argentina is not for the faint of heart. The country is notoriously bad at defaulting on its debt, making investments extremely volatile. That said, BBAR is cheaper than it has been in the past five years. I would recommend the bank stock for aggressive investors only. Global Cord Blood Corp. (CO)Source: Shutterstock Market Cap: $323.3 million Price-to-Book: 0.61After what's happened to Luckin Coffee (NYSE:LK) in 2020, most investors will probably want to steer clear of Chinese investments, except maybe Alibaba (NYSE:BABA) and a handful of other stocks. For those more adventurous, Global Cord Blood (NYSE:CO) holds three out of the seven licenses to operate cord blood banks in China. Two million babies are born each year in the three markets it operates: Beijing, Guangdong and Zhejiang. It has accumulated over 815,000 subscribers since its founding in 2003. Globally, there are 35 private cord blood banks in the U.S., another 104 in Europe and 54 in South America. Approximately four million private cord blood units are stored worldwide. Global Blood Corp. has 47% market share in China. The company charges a one-time processing fee of 9,800 Chinese Yuan and an annual storage fee of 860 Chinese Yuan for 18 years. That translates to $200 per customer per year amortized over 18 years. It adds up. * 10 Stocks to Buy to Weather the Recession In the first nine months of 2020, the company had revenues of $132.4 million, 25.4% higher than a year earlier, along with operating income of $58.8 million, 39.9% higher than in the first nine months of fiscal 2019. Silvercorp Metals (SVM)Source: Shutterstock Market Cap: $688.4 million Price-to-Book: 1.88Vancouver-based Silvercorp Metals (NYSEAMERICAN:SVM) entered the Chinese market in 2004 by acquiring the Ying project, a small producing mine in the Henan province. Today, Silvercorp produces 6.4 million ounces of silver annually, 22.7 million pounds of zinc and more than 3,500 ounces of gold.On May 17, Silvercorp announced it would acquire Guyana Goldfields (OTCMKTS:GUYFF) for 227 million CAD in a cash-and-stock deal worth $1.30 per share. Guyana operates the Aurora gold mine in Guyana. The mine produces between 145,000 and 160,000 ounces per year. It has been in production since 2016. The acquisition creates a diversified precious metals producer that generates positive free cash flow. With Guyana Goldfields under its wing, it will have a strong balance sheet to make further acquisitions and move the Aurora mine from an open-pit operation to an underground mine with more than 14 years of production capacity. Newmark Group (NMRK)Source: Shutterstock Market Cap: $737.9 million Price-to-Book: 1.16Newmark (NASDAQ:NMRK) is a full-service commercial real estate advisory that provides services to both owners and tenants. The company was spun-off from its former parent, BGC Partners (NASDAQ:BGCP), in November 2018. On May 7, Newmark reported its Q1 2020 results. On the top line, it had $483.9 million in revenue, 8.1% higher than a year earlier. On the bottom line, it had adjusted earnings of $23.5 million, 57.8% lower than in the same period a year earlier. Sales were 2% lower than the consensus estimate while its GAAP profit was 3 cents per share, 70% lower than the consensus estimate. Since it announced earnings, its shares have basically gone sideways, which is a good sign if you've owned its shares for a long time. One thing dividend investors will notice is that the company cut its quarterly dividend by 90% from 10 cents to 1 cent starting with the June payment. With the dividend cut, it currently yields slightly less than 1%. * 7 Gun Stocks to Buy During the Coronavirus Pandemic Expect Newmark to face a tough commercial real estate market over the next few quarters. However, it has made several moves, including the dividend cut, to ensure it remains financially sound during the economic downturn caused by the novel coronavirus. Smith Micro Software (SMSI)Source: Shutterstock Market Cap: $173.6 million Price-to-Book: 3.28Smith Micro Software (NASDAQ:SMSI) provides software to wireless carriers to enhance their user experience. It currently has three main products: SafePath, CommSuite and ViewSpot. In the latest quarter ended March 31, SafePath generated 59% of the company's $13.2 million in wireless revenue during the quarter while CommSuite accounted for another 34%.SafePath's solutions keep families' devices connected providing a safer, more enjoyable digital experience. CommSuite provides voice-to-text voice mail messaging for mobile devices that can be accessed from anywhere using any device. It has been installed on more than 18 million mobile devices. In the first quarter, Smith Micro had adjusted net income of $4.1 million, up significantly from $776,000 a year earlier. The company continues to expand its product offerings beyond SafePath and CommSuite, providing investors with a diversified penny stock opportunity. One thing to be aware of before you invest: Sprint accounts for 88% of the company's total revenue. Its merger with T-Mobile (NASDAQ:TMUS) could affect the relationship in the future. Orion Energy Systems (OESX)Source: Shutterstock Market Cap: $138.3 million Price-to-Book: 4.40Orion Energy Systems (NASDAQ:OESX) manufactures indoor and outdoor LED lighting and lighting solutions for all kinds of different industries, including agriculture, healthcare, retail, etc. The company's lighting solutions are 100% turnkey, providing customers with just one touchpoint when it comes to service.Its customers are some of the biggest names including Costco (NASDAQ:COST), Coca-Cola (NYSE:KO) and General Electric (NYSE:GE).On March 16, Orion was added to the CIBC Atlas Clean Energy Index, an index with exposure to U.S. and Canadian companies operating in the clean energy sector. Segments include solar, wind, hydro, geothermal, electric vehicles, LED and many others. As of May 26, the index had a one-year return of 29.9%. In February, Orion reported Q3 2020 results that included revenue growth of 110%. More importantly, its net income went from a loss of $700,000 in Q3 2019 to a profit of $2.3 million. As a result of its strong showing in the third quarter, it upped its fiscal 2020 guidance from $140 million at the midpoint to $152.5 million at the midpoint. * 6 Companies to Invest in Today for 10 Years of Growth Orion is definitely an under-the-radar type of penny stock opportunity. Mistras Group (MG)Source: Shutterstock Market Cap: $127.9 million Price-to-Book: 0.75Mistras Group (NYSE:MG) proclaims it is the only publicly traded pure-play asset protection company in the U.S. with more than 115 locations worldwide managed by approximately 5,000 employees.Founded in 1978, the company originally known as Physical Acoustics Corporation, became Mistras Group in 2007. Two years later it completed its IPO. The company helps industries such as oil and gas keep their assets running safely. Oil and gas account for approximately 56% of its revenue with aerospace and defense (15%) and industrials (12%) helping carry some of the load. Mistras' core business involves the non-destructive testing (NDT) of assets, a market that's estimated to be $14 billion worldwide. It has an approximately 4.5% share of the global NDT market.In the near term, Covid-19 is causing delays in projects, especially in the oil and gas sector. As a result, it expects revenues to face declines in the second quarter, but that higher oil prices means the third and fourth quarters will likely see energy companies undertake testing projects they've postponed due to the pandemic and lower prices.Down almost 70% year to date, Mistras is worth taking a closer look at. Office Depot (ODP)Source: Jonathan Weiss / Shutterstock.com Market Cap: $1.3 billion Price-to-Book: 0.59Definitely the largest of the penny stocks to buy discussed so far, it's probably the best known as well. Who hasn't been to Office Depot (NASDAQ:ODP) at some point in their life? It's hard to believe ODP once traded over $40.While it's unlikely to get back to those lofty heights, aggressive investors ought to consider taking a flyer on this once-dominant office supplies retailer.Office Depot announced a restructuring plan on May 18 that includes closing stores, distribution centers and reducing its headcount by 13,100 people by the end of 2023. The company expects the restructuring to save it $860 million in the next three-and-a-half years. The company is moving to a business-to-business and IT services focus. The cuts will help it invest in growing these segments of its business. Unfortunately, Covid-19 is hurting this segment at a time when it can ill afford to lose momentum. Fortunately, its retail stores have been deemed essential services during the crisis, so sales at its stores rose by 2% during the first quarter. * The 9 Best Cheap Stocks to Fill Up On Now Over the past five years, Office Depot's price-to-book ratio averaged 1.17. Today, it's half that amount. I wouldn't buy this stock if you really need the money, but if you can afford to lose the entire amount, the risk/reward is quite balanced. Garrett Motion (GTX)Source: Shutterstock Market Cap: $362.8 million Price-to-Book: N/AGarrett Motion (NYSE:GTX) makes turbochargers for light and commercial vehicles. Until October 2018, it was part of Honeywell (NYSE:HON), when it was spun-off from the industrial conglomerate. Honeywell shareholders got one share in Garrett for every $10 shares in the parent.How have shareholders made out? With dividends, they've probably broken even, but that's about it. Trading slightly below $5 as I write this, it traded as high as $20 in April 2019. On May 11, Garrett reported its Q1 2020 results. Sales fell by 8.5%, excluding currency, to $745 million, while its adjusted net income declined by 26% to $68 million. However, both its top- and bottom-line handily beat analyst estimates for the quarter.During the company's conference call May 11, CEO Olivier Rabiller stressed that despite its fastest-growing plant shutting down for six weeks during the first quarter — it's in Wuhan, the epicenter of the global pandemic — it has fared better than many others operating in the global automotive sector and that speaks to Garrett's global capabilities. Down 52% on the year, Garrett could be the best buy of the bunch. Information Services Group (III)Market Cap: $86.2 million Price-to-Book: 0.99The smallest of the penny stocks to buy, good things come in small packages. Information Services Group (NASDAQ:III) is a technology consulting firm that helps more than 700 clients transform their businesses through digitalization. It consults for 75 of the world's top 100 enterprises. It's a big deal despite its size.Over the past year, III stock has drifted down from $3 in July 2019, to $1.80 as I write this, down 30% on the year. What has been the problem? It's hard to put my finger on it. The company does have operating expenses that are higher than the revenue it brings in but on an adjusted basis it does make money. In the first quarter, it reported revenue of $63.7 million, flat to last year, excluding currency. In terms of the bottom line, its adjusted profit in Q1 2020 was $1.1 million, down 26.7% from the same period a year earlier. The good news is that CEO Michael Connors believes that it will double its profitability in the second quarter compared to the first, despite the demand for its advisory services slowing due to Covid-19. I wouldn't bet the farm, but an increase in profits could result in a tangible jump in its stock price over the next three to six months. * 10 of the Best Long-Term Stocks to Buy When the Market's Down To recap, the ten penny stocks that make the list are as follows: * Banco Bbva Argentina * Global Cord Blood * Silvercorp Metals * Newmark Group * Smith Micro Software * Orion Energy Systems * Mistras Group * Office Depot * Garrett Motion * Information Services GroupWill Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post 10 Penny Stocks to Buy Under $5 That Might Be Worth the Risk appeared first on InvestorPlace.

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In one of the largest IPO’s of 2020, Peet’s Coffee raised $2.5 billion amid the global pandemic. Shares of the coffee maker JDE Peet’s surged 15% in their stock market debut on Friday. Yahoo Finance’s Dan Roberts discusses the logistics surrounding the only big European IPO launched during the coronavirus crisis.

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Scott Baxter, Kontoor Brands President & CEO, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to speak about the company’s partnerships with major retailers, its supply chain, the retail industry overall and more.

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5G or fifth-generation telecom promises huge changes in the way we interact with technology. For investors, this means it's time to think about 5G stocks.5G will not only be faster, but it will provide more bandwidth. This means that we, and the companies that provide us with data, can provide more data simultaneously.If I can lean on the analogy of water through a hose — not only will the water move faster through the hose, but the hose will also increase in size. This is going to mean that wireless connections will be as fast, and in some places faster, than the available wireline services.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIt will mean technologies like smart cars and everything provided through cloud services will be accessed in near real time, wherever you are. It will also change providers' ability to share content like movies, games or teleconferences. Along the way, the companies facilitating all of this could see enormous upside in their share prices. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure And the seven 5G stocks looking to the future that I feature below are laying the tracks for the next telecom expansion across the U.S. and the world. * Ciena (NYSE:CIEN) * Intel (NASDAQ:INTC) * Lumentum (NASDAQ:LITE) * American Tower REIT (NYSE:AMT) * Crown Castle International (NYSE:CCI) * Qualcomm (NASDAQ:QCOM) * Texas Instruments (NASDAQ:TXN) 5G Stocks to Buy: Ciena (CIEN)Source: Michael Vi / Shutterstock.com This optical networking firm has been around since 1992. It's been around so long, it's headquartered in quiet Hanover, Maryland, since Silicon Valley was just glimmer in geeks' eyes back then.It was way ahead of its time. It specializes in optical networking equipment. The thing was, back then, fiber optic cable was as scarce as hen's teeth. It was a play on the future of the internet.Before the tech bubble burst, CIEN stock traded as high as $847 a share. But those were the days when brokers were telling clients that growth was the new income and a growth stock wasn't respectable if it didn't have a triple-digit price-earnings ratio.But CIEN made it through, which is testament to its management and its technology. Now, 20 years later, it is one of the leading companies in the vibrant and expanding optical networking space.The stock is up 56% in the past 12 months and 28% year to date. Yet, it still only trades at a P/E of 30. Intel (INTC)Source: JHVEPhoto / Shutterstock.com The computer you're using to read this likely has an Intel chip or two inside it. It's the largest semiconductor company in the world and invented the x86 chip that sits in almost every personal computer. And next month it will celebrate its 51st birthday.Intel has had its struggles remaining at the top of the chip heap. Management didn't get in the mobility sector until it was too late, and missed a huge opportunity in the smartphone world. But it is well-positioned in the internet of things (IOT), and has found opportunities in markets like 5G, AI, memory and networking as well.The competition is tough. CEO Bob Swan is an industry veteran but not a career Intel guy, and he took over in January 2019. Much of his leadership career was operating as a CFO for various large tech firms, so it will be interesting to see if he can keep INTC moving in the right directions. * 7 Cheap Stocks to Buy With Great Potential So far, so good. The stock is up 42% in the past year and 3% year to date. It also delivers a solid 2.1% dividend. And besides INTC itself, the 5G upgrade offers investors the chance to buy potentially the "next Intel" today. Lumentum (LITE)Source: Michael Vi / Shutterstock.com This company is also in the optical networking sector, but it launched just five years ago. And instead of focusing on the optical switching aspects, LITE focuses on the distribution and transmission of fiber optic networks.It also makes a variety of lasers for numerous applications. The lasers are used to build equipment in industries as varied as the automotive sector to mobile phones and semiconductors. And they are used for 3D sensing equipment.Just as cloud computing ultimately needs real hardware to operate, mobile networks need the fastest data transmission possible. And for now, that's fiber optic cables.That means that the greater the global demand for 5G, the more business LITE stands to gain. Also, the more we rely on advanced technologies, the more demand there will be to build more advance devices.The stock is up 72% in the past year and is off 9% year to date. American Tower REIT (AMT)Source: Pavel Kapysh / Shutterstock.com As you well know, mobile signals need mobile transmission towers. AMT is one of the top tower companies in the world, and it's one of the top 5G stocks to buy.It has operations across North America, Latin America, Europe, Africa and Asia. Since towers are property, AMT became a real estate investment trust (REIT), which has tax advantages for the company and the shareholders. All REITs consider shareholders direct owners and distribute net income via a dividend.5G is going to need towers because its antenna are different than previous generations of telecom services. Given the fact that AMT already has more than 180,000 towers around the world, and a solid history as a reliable partner, it's well positioned for the 5G wave.It continues to acquire smaller broadcast companies around the globe, including India and Africa, where mobile telecom is much denser than traditional wireline services. * 25 Stocks to Buy for the Reopening Rally The stock is up 27% in the past year and 12% year to date. It also provides a 1.7% dividend. It's among my top stocks for the worldwide 5G upgrade taking hold now. Crown Castle International (CCI)Source: Casimiro PT / Shutterstock.com This is another tower company, but it has two difference from AMT. First, it focuses its operations on the U.S., where it has over 40,000 towers.Second, it also has a significant small cells business for denser spots like office buildings and stadiums, as well as more than 80,000 miles of fiber optic cable. These are key sectors for 5G stocks because 5G has unique challenges in cities, and venues like stadiums will have growing challenges as events become carried on live streams and guests will be sharing across social media.CCI is also a REIT and is delivering an impressive 3% dividend currently. The stock is up 34% in the past 12 months, and 19% year to date.Owning both AMT and CCI stock captures a significant amount of the potential 5G transmission sector, but both stocks are trading at premiums currently. Qualcomm (QCOM)Source: JHVEPhoto / Shutterstock.com This telecom chipmaker has been around since 1985 and has been a major player in the mobility revolution. Its origins were building out CDMA telecom technology for commercial trucking operations. When mobile phones came out, one of the leading channels used for phones in the U.S. became CDMA.Now, CDMA and GSM run all the phones around the world and most chips can switch from one channel to the other if necessary.QCOM makes more money on licensing its patents than it does on actually shipping chips. That means it doesn't have to build massively expensive chip plants, and focuses on design rather than production.However, Qualcomm has run into antitrust issues. A few years ago it had to pay out massive fines to China and other countries that sued it because of its monopolistic hold on mobile phone infrastructure.But those days are behind it, and it is certainly going to be a major player as 5G starts to roll out globally.The stock is up 20% in the past year and off almost 12% year to date. It has an impressive 3.2% dividend and is trading at a reasonable P/E of 23. Texas Instruments (TXN)Source: Katherine Welles / Shutterstock.com Many people remember TXN as the company that built the coolest calculators around. And the fact is, it continues to make the default calculators for most high school students.But Texas Instruments, which has been around since 1930, is also one of the biggest chipmakers in the world. Nearly 80% of its revenue comes from analog chips and embedded processors. Analog chips convert analog inputs — like voice — into digital form for processing. And embedded processors are dedicated systems that provide a function within a larger piece of equipment or system. Think a sound system inside a car.These aren't sexy, but they are everywhere. And TXN can produce high-quality, reliable chips and processors in huge quantities. With everything going digital, that means TXN is in a growth business and is already producing at scale, and making money doing it.Not every aspect of our digital lives has to be built from cutting-edge designs; keeping some things simple makes high-performance equipment easier to maintain and more reliable. And TXN is certainly keeping up with the biggest trends, including 5G, but it is a significant supporting player, not a headliner.The stock is up nearly 14% in the past 12 months, and off 10% year to date. It also offers a durable and generous 3% dividend.Texas Instruments and other hardware makers I've mentioned here today are great examples of 5G stocks that stand to benefit from the 5G revolution.And I see even better potential with the companies that are making this massive infrastructure upgrade possible in the first place! The 5G Buildout Is an Incredible Opportunity for Investors Right NowWithin two years, most cell phones will be 5G enabled and be able to wirelessly handle television streaming. With 5G, we'll have cable modem speeds on any device; no need to plug in. That's a big deal for rural areas … the very same areas that are also key to President Donald Trump's reelection. So, by pushing 5G over the goal line, Trump will deliver a big win for his base — and strike a blow against Chinese rivals like Huawei Technologies.But, in the big picture, 5G is about much more than trade wars and faster downloads. Because 5G is 100 times faster than 4G, it'll allow your internet devices to work in real time. That advancement is a game changer for tech companies.With the 5G infrastructure market set to grow at an annual rate of 67% over the next 10 years, the entire market will go from $780 million to nearly $48 billion. This buildout is where I see opportunity with 5G stocks now.Cable companies can do their best to fight back with fiber optics … but they can't compete with the convenience of a smartphone, once it's got ultra-fast 5G. That's how my 5G infrastructure play will capture more market share from the broadband cable companies.The stock I'm targeting is enjoying an influx of big money on Wall Street, and it has strong fundamentals, too — making it an A-rated "Strong Buy" in my Portfolio Grader system.Click here to watch my new, free briefing on this extraordinary technology and the opportunity with 5G stocks.When you do, you'll see how to claim a free copy of my investment report, The King of 5G "Turbo Button" Technology, which has full details on this company — and what makes it such a great buy now.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post 7 5G Stocks to Buy for the Future of Telecom appeared first on InvestorPlace.

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Marathon Oil (NYSE:MRO) is one of the many oil and gas producers pushed to the limit due to the novel coronavirus. MRO stock has shed 56% of its value since December 2019, whereas the SPDR Energy Select Sector exchange-traded fund dropped 35% in the same period.Source: IgorGolovniov / Shutterstock.com Morgan Stanley (NYSE: MS) recently turned bearish on MRO stock due to its challenging outlook and substantial debt levels. CEO Lee Tillman believes the company is undergoing unprecedented challenges.Still, I believe it has enough in the tank to emerge from this crisis as a stronger company with a leaner cost structure and sufficient financial flexibility. However, given the uncertainty in the market and the company's weakening liquidity position, it will be tough for MRO to bounce back in the short term. Let's take a closer look at the company's fortunes and try to understand where it's going next.InvestorPlace – Stock Market News, Stock Advice & Trading Tips MRO Stock and a Dismal Q1The first quarter was tough for Marathon, mainly due to the substantial dip in demand for crude oil and considerable reductions in oil prices. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Oil markets played double jeopardy due to the pandemic and escalation in tensions between Russia and Saudi Arabia. The reduction in demand resulted in a loss of $0.16 per share, which was slightly higher than analyst expectations.Total revenues and other income rose by 2.7% from the year-ago period, which was buttressed by a $202 million net benefit on its commodity derivatives–additionally, revenues from contracts reduced by 14.7% due to a decline in the realized oil prices.On the back of its disappointing first-quarter results, Marathon announced that it would be slashing costs, capital expenditures, and halting shareholder rewards. The capital budget will be reduced by 50%, which will impact production levels in the near term.Moreover, the cash reductions in its costs are planned at 20%, compared to its initial budget. A sizeable portion of these costs are fixed in nature; therefore, the resultant savings will be sustained even when production volumes rise.According to Tillman, these cost savings "will result in a $5 to $6 per barrel improvement in our cash flow breakeven oil price."It's in an unwarranted position in terms of liquidity, with roughly $800 million in cash and cash equivalents and $3 billion in borrowing capacity. Its debt to equity ratio is 28% higher than the industry average. Also, its current ratio is 40% lower than the industry average.However, management feels that the suspension of its dividend share purchase plan will allow the company t0 to strengthen its liquidity position and improve cash flow. ValuationAnalysts have had differing viewpoints about the MRO stock valuation. Morgan Stanley believes MRO stock should be valued at $5, which is roughly 18% lower than its current price.Mean estimates for the stock price are at the $7 mark, but the difference between the high and low estimates is more than three times its current share price.The company's trailing 12 months price-earnings ratio is 21.2, which is significantly higher than the Oil and Gas sector's ratio at 10.25. Using the P/E ratio, we can calculate the company's enterprise value and its stock price. The formula is given as follows:Enterprise Value= P/E ratio (TTM) * Net income (TTM)= 21.2* $260 million= $5.51 billion / 804 million shares= $6.85The results show that the company is trading at a 16% bargain to its current stock price of $5.89. These results are in line with the analyst estimates, which indicated a $7 price per share. Looking AheadThings aren't looking too great for Marathon in the second quarter, either. In light of the volatility in the global commodity prices and the economic environment, the company has withdrawn its guidance for the upcoming quarters.It expects U.S. crude oil production to decline by roughly 8% on a divestiture-adjusted basis. The company will assess the need for curtailments in response to market conditions.The company's current quarter estimates have drastically reduced in the past 90 days from $0.09 to $-0.56, which represents a loss of 717%. Analysts expect the quarterly loss to be at $0.55, which represents a 244% increase from the previous quarter. However, they expect things to improve in the third quarter somewhat.Currently, the demand for gasoline remains highly uncertain along with jet fuel; hence the company would have to focus on kerosene to drive company value in the foreseeable future. Going forward, the company must manage its leverage by controlling capital expenditures and operational costs as much as possible. Bottom LineDespite making efforts to control costs, Marathon still finds itself in a precarious situation heading into the second quarter.The oil price recovery is still in its early stages, and the slowness of the rebound will continue to hurt the company for the better part of this year.Morgan Stanley believes that by 2021, the company's leverage per strip will be 2.5 times more than the industry median. Additionally, credit rating firms such as S&P Global and Moody's have significantly lowered their credit rating in the past few weeks. Therefore, I have a bearish outlook on MRO stock.As of this writing, Muslim Farooque did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Marathon Oil Stock Will Continue to Limp Along as the Pandemic Continues appeared first on InvestorPlace.

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