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Exxon Mobil (XOM) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Exxon Mobil (XOM) closed the most recent trading day at $75.93, moving -1.49% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.43%.

Prior to today's trading, shares of the oil and natural gas company had gained 2.65% over the past month. This has lagged the Oils-Energy sector's gain of 4.19% and the S&P 500's gain of 4.46% in that time.

Investors will be hoping for strength from XOM as it approaches its next earnings release, which is expected to be August 2, 2019. In that report, analysts expect XOM to post earnings of $0.88 per share. This would mark a year-over-year decline of 4.35%. Our most recent consensus estimate is calling for quarterly revenue of $67.72 billion, down 7.86% from the year-ago period.

XOM's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $268.12 billion. These results would represent year-over-year changes of -23.33% and -7.61%, respectively.

Any recent changes to analyst estimates for XOM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.07% lower. XOM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that XOM has a Forward P/E ratio of 20.4 right now. Its industry sports an average Forward P/E of 12.2, so we one might conclude that XOM is trading at a premium comparatively.

Meanwhile, XOM's PEG ratio is currently 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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