In the latest trading session, Exxon Mobil (XOM) closed at $81.51, marking a +0.79% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.
Heading into today, shares of the oil and natural gas company had gained 3.37% over the past month, outpacing the Oils-Energy sector's gain of 1.29% and the S&P 500's gain of 2.14% in that time.
Wall Street will be looking for positivity from XOM as it approaches its next earnings report date. The company is expected to report EPS of $0.88, down 19.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $69.31 billion, up 1.61% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $294.36 billion. These totals would mark changes of -17.44% and +1.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for XOM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. XOM is currently a Zacks Rank #3 (Hold).
In terms of valuation, XOM is currently trading at a Forward P/E ratio of 19.85. Its industry sports an average Forward P/E of 12.22, so we one might conclude that XOM is trading at a premium comparatively.
It is also worth noting that XOM currently has a PEG ratio of 1.42. 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 1.38 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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