MUR | Long Setup | Strong Dividend | (May 2025)MUR | Long Setup | Undervalued with Strong Dividend | (May 2025)
1️⃣ Short Insight Summary:
Murphy Oil (MUR) is showing a pattern very similar to its 2020 structure — with a recent consolidation from late March to early May that could lead to a bounce. Technically and fundamentally, this setup looks interesting for a long entry.
2️⃣ Trade Parameters:
Bias: Long
Entry: Around current levels ($21–$22)
Stop Loss: $15–$16
TP1: $28
TP2: $36
TP3: $44
TP4: Let the rest run
3️⃣ Key Notes:
The stock is currently trading well below its tangible book value of $35, which suggests it's significantly undervalued. Revenue stands at SEED_TVCODER77_ETHBTCDATA:9B , net income at $400M, and EPS at $2.70. The dividend yield is an impressive 6%, and beta is 0.8 — making it relatively less volatile than the broader market.
While the company has SEED_TVCODER77_ETHBTCDATA:2B in debt and $800M in free cash flow, the debt level is not alarming for a growing business — especially one with solid dividend policies. Earnings and revenue growth are slightly down on a quarterly basis, but annual forecasts still expect moderate growth. The company may be using the high dividend to attract long-term investors while working through current headwinds.
4️⃣ Optional Follow-up Note:
This isn’t a high-conviction setup, but it has a good risk-to-reward profile (roughly 1:5). If it plays out, great — and if not, the tight stop keeps risk limited. Will monitor closely for confirmation.
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Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.
