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

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Exxon Mobil (XOM) closed the most recent trading day at $80.43, moving -0.35% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.16%.

Prior to today's trading, shares of the oil and natural gas company had gained 5.85% over the past month. This has outpaced the Oils-Energy sector's gain of 2.32% and the S&P 500's gain of 2.35% in that time.

Investors will be hoping for strength from XOM as it approaches its next earnings release. On that day, XOM is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 19.27%. Our most recent consensus estimate is calling for quarterly revenue of $69.31 billion, up 1.61% from the year-ago period.

XOM's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $294.36 billion. These results would represent year-over-year changes of -17.44% and +1.43%, respectively.

It is also important to note the recent changes to analyst estimates for XOM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 1.15% higher within the past month. XOM is currently a Zacks Rank #3 (Hold).

In terms of valuation, XOM is currently trading at a Forward P/E ratio of 19.81. This valuation marks a premium compared to its industry's average Forward P/E of 12.16.

Investors should also note that XOM has a PEG ratio of 1.42 right now. 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 industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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