Exxon (XOM) Surges 4.5%: Is This an Indication of Further Gains?

·2 min read

ExxonMobil (XOM) shares ended the last trading session 4.5% higher at $107.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.9% loss over the past four weeks.

ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. In the Permian, ExxonMobil has an inventory of more than 8,000 well locations, with the integrated energy major estimating a net of 10 billion oil-equivalent barrels of recoverable resources. In offshore Guyana, it made several discoveries that XOM estimated at more than 10 billion oil-equivalent barrels of recoverable resource.

This oil and natural gas company is expected to post quarterly earnings of $2.45 per share in its upcoming report, which represents a year-over-year change of +18.4%. Revenues are expected to be $87.44 billion, down 3.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Exxon, the consensus EPS estimate for the quarter has been revised 4.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on XOM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exxon is a member of the Zacks Oil and Gas - Integrated - International industry. One other stock in the same industry, YPF Sociedad Anonima (YPF), finished the last trading session 7.6% higher at $9.82. YPF has returned -20% over the past month.

For YPF Sociedad Anonima , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.13. This represents a change of +76.6% from what the company reported a year ago. YPF Sociedad Anonima currently has a Zacks Rank of #1 (Strong Buy).

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