In the latest trading session, Exxon Mobil (XOM) closed at $70.29, marking a +0.5% move from the previous day. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.
Heading into today, shares of the oil and natural gas company had gained 0.39% over the past month, lagging the Oils-Energy sector's gain of 4.53% and the S&P 500's gain of 3.81% in that time.
XOM will be looking to display strength as it nears its next earnings release. In that report, analysts expect XOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 52.98%. Our most recent consensus estimate is calling for quarterly revenue of $67.17 billion, down 6.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.55 per share and revenue of $265.24 billion, which would represent changes of -48.28% and -8.6%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 1.39% higher within the past month. 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 27.41. For comparison, its industry has an average Forward P/E of 13.13, which means XOM is trading at a premium to the group.
Meanwhile, XOM's PEG ratio is currently 2.79. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 26% 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.
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