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Exxon Mobil (XOM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Exxon Mobil (XOM) closed at $81.20, marking a +0.68% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.

Heading into today, shares of the oil and natural gas company had lost 0.53% over the past month, lagging the Oils-Energy sector's loss of 0.03% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from XOM as it approaches its next earnings report date. This is expected to be April 26, 2019. In that report, analysts expect XOM to post earnings of $0.78 per share. This would mark a year-over-year decline of 28.44%. Meanwhile, our latest consensus estimate is calling for revenue of $66.31 billion, down 2.79% from the prior-year quarter.

XOM's full-year Zacks Consensus Estimates are calling for earnings of $4.10 per share and revenue of $283.25 billion. These results would represent year-over-year changes of -16.84% and -2.4%, respectively.

Any recent changes to analyst estimates for XOM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.81% lower within the past month. XOM is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that XOM has a Forward P/E ratio of 19.68 right now. This represents a premium compared to its industry's average Forward P/E of 11.6.

Investors should also note that XOM has a PEG ratio of 1.32 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% 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.

To follow XOM in the coming trading sessions, be sure to utilize Zacks.com.


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