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

Zacks Equity Research

Exxon Mobil (XOM) closed at $74.95 in the latest trading session, marking a +0.5% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.05%.

Heading into today, shares of the oil and natural gas company had lost 2.85% over the past month, lagging the Oils-Energy sector's loss of 1.5% and the S&P 500's loss of 0.08% in that time.

Investors will be hoping for strength from XOM as it approaches its next earnings release. The company is expected to report EPS of $0.94, up 2.17% from the prior-year quarter. 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.

Investors might also notice recent changes to analyst estimates for XOM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate 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 18.7. This valuation marks a premium compared to its industry's average Forward P/E of 11.35.

Also, we should mention that XOM has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. XOM's industry had an average PEG ratio of 1.74 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 70, which puts it in the top 28% 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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