XOM Stock – Exxon Mobil (XOM) Dips More Than Broader Markets: What You Should Know
Exxon Mobil (XOM) closed at $57.40 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500’s daily loss of 0.09%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 0.6%.
Prior to today’s trading, shares of the oil and natural gas company had gained 3.5% over the past month. This has lagged the Oils-Energy sector’s gain of 4.44% and the S&P 500’s gain of 4.45% in that time.
XOM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.59, up 11.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.97 billion, down 0.33% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.93 per share and revenue of $229.07 billion. These totals would mark changes of +987.88% and +26.21%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 37.41% higher within the past month. XOM is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that XOM has a Forward P/E ratio of 19.67 right now. For comparison, its industry has an average Forward P/E of 12.17, which means XOM is trading at a premium to the group.
It is also worth noting that XOM currently has a PEG ratio of 2.07. 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 was holding an average PEG ratio of 1.1 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 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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