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Exxon Mobil (XOM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Exxon Mobil (XOM) closed the most recent trading day at $77.50, moving +1.4% from the previous trading session. This change outpaced the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.75%.

Prior to today's trading, shares of the oil and natural gas company had gained 2.12% over the past month. This has lagged the Oils-Energy sector's gain of 2.37% and the S&P 500's gain of 3.84% in that time.

Wall Street will be looking for positivity from XOM as it approaches its next earnings report date. This is expected to be August 2, 2019. The company is expected to report EPS of $0.88, down 4.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.72 billion, down 7.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.78 per share and revenue of $268.14 billion, which would represent changes of -23.33% and -7.61%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for XOM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 5.27% lower within the past month. XOM is currently a Zacks Rank #3 (Hold).

Digging into valuation, XOM currently has a Forward P/E ratio of 20.23. This valuation marks a premium compared to its industry's average Forward P/E of 12.19.

Also, we should mention that XOM has a PEG ratio of 1.85. 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 1.85 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 247, which puts it in the bottom 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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