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

Zacks Equity Research

Exxon Mobil (XOM) closed at $75.05 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.62%.

Coming into today, shares of the oil and natural gas company had lost 2.63% in the past month. In that same time, the Oils-Energy sector lost 2.88%, while the S&P 500 gained 2.08%.

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 $0.94 per share, which would represent year-over-year growth of 2.17%. Meanwhile, our latest consensus estimate is calling for revenue of $74.45 billion, up 1.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $282.29 billion, which would represent changes of -19.07% and -2.73%, respectively, from the prior year.

It is also important to note the 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. XOM is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note XOM's current valuation metrics, including its Forward P/E ratio of 18.64. This valuation marks a premium compared to its industry's average Forward P/E of 11.6.

Investors should also note that XOM has a PEG ratio of 1.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.69 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 174, putting it in the bottom 33% 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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