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Exxon Mobil (XOM) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Exxon Mobil (XOM - Free Report) closed at $106.30, marking a +0.41% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.

The oil and natural gas company's stock has dropped by 13.07% in the past month, falling short of the Oils-Energy sector's loss of 9.2% and the S&P 500's gain of 0.34%.

The investment community will be closely monitoring the performance of Exxon Mobil in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.72, marking a 30.65% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $88.79 billion, indicating a 5.27% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $7.95 per share and a revenue of $354.11 billion, demonstrating changes of -16.49% and +2.77%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Exxon Mobil. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% downward. Exxon Mobil is currently a Zacks Rank #3 (Hold).

Looking at valuation, Exxon Mobil is presently trading at a Forward P/E ratio of 13.32. This indicates a premium in contrast to its industry's Forward P/E of 7.65.

It's also important to note that XOM currently trades at a PEG ratio of 2.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - International industry had an average PEG ratio of 2.03 as trading concluded yesterday.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% of all 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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