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Exxon Mobil (XOM) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Exxon Mobil (XOM - Free Report) ending at $117.22, denoting a +1.21% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.42%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%.

The oil and natural gas company's shares have seen a decrease of 1.8% over the last month, surpassing the Oils-Energy sector's loss of 2.47% and falling behind the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Exxon Mobil in its upcoming release. In that report, analysts expect Exxon Mobil to post earnings of $1.93 per share. This would mark a year-over-year decline of 14.98%. Simultaneously, our latest consensus estimate expects the revenue to be $94.37 billion, showing a 3.97% escalation compared to the year-ago quarter.

XOM's full-year Zacks Consensus Estimates are calling for earnings of $8.07 per share and revenue of $362.47 billion. These results would represent year-over-year changes of -15.23% and +5.19%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Exxon Mobil. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 3.61% lower. Exxon Mobil is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Exxon Mobil has a Forward P/E ratio of 14.35 right now. This represents a premium compared to its industry's average Forward P/E of 7.83.

Meanwhile, XOM's PEG ratio is currently 4.78. 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. The Oil and Gas - Integrated - International industry had an average PEG ratio of 1.53 as trading concluded yesterday.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 233, placing it within the bottom 8% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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