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Exxon Mobil Q3 Earnings Preview: Will XOM Stock Keep Hitting New Highs?
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Exxon Mobil (XOM - Free Report) is set to report its quarterly earnings results on Friday, October 28 alongside other big oil stocks. The Oil and Energy sector has been a bright spot in the market over the last few years with other industries struggling due to a fading economy.
The stellar performance for XOM has continued going into its Q3 earnings release as the stock recently hit 52-week highs. Investors will be wondering if a strong report could continue accelerating the stock or if it is time for XOM to cool off.
Image Source: Zacks Investment Research
Q3 Outlook
The Zacks Consensus Estimate for XOM’s Q3 earnings is $3.88 per share, which would represent a +145% increase from Q3 2021. Sales for Q3 are expected to climb 56% at $115.19 billion. The operating environment has been very profitable for XOM and the Oil and Gas-Integrated-International Industry that’s currently in the top 23% of over 250 Zacks Industries.
Earnings estimates for the period have largely gone up from $3.20 at the beginning of the quarter. Year over year, XOM earnings are expected to climb 146% but slip -19% in FY23 at $10.62 per share as it faces an extremely tough-to-compete against year. Sales are expected to rise 51% this year and dip -7% in FY23 to $399.40 billion. However, earnings estimate revisions for this year and FY23 have countinued to climb, including positive revisions in the last seven days.
Performance & Valuation
Year to date XOM is up an impressive +76% to crush the S&P 500’s -20% and top the Oil & Gas Integrated Market’s +44%. Even better, over the last two years if you include XOM’s stellar dividend its total return is +286%. This crushed the benchmark and beat its Zacks Subindustry’s +196%.
Image Source: Zacks Investment Research
Despite the impressive rally, Exxon Mobil appears to be fairly valued. Trading around $107 per share, XOM has a P/E of 8.1X. This is above the industry average of 4.4X. However, XOM still trades at a considerable discount to its decade-high of 349.5X and is below the median of 17.7X.
Bottom Line
The broader rally in oil and gas stocks may continue to support XOM as well with fellow energy giant Chevron (CVX - Free Report) also edging toward highs. An earnings beat and strong guidance could further sustain XOM’s rally.
Exxon Mobil currently lands a Zacks Rank #2 (Buy) in correlation with rising earnings estimate revisions. XOM is in a top-rated industry and has an overall “A” VGM grade. Oil prices have also remained high, with crude oil climbing over $90 in October and currently at $88.63. Plus, XOM offers investors a solid 3.29% dividend yield at $3.52 per share.
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Exxon Mobil Q3 Earnings Preview: Will XOM Stock Keep Hitting New Highs?
Exxon Mobil (XOM - Free Report) is set to report its quarterly earnings results on Friday, October 28 alongside other big oil stocks. The Oil and Energy sector has been a bright spot in the market over the last few years with other industries struggling due to a fading economy.
The stellar performance for XOM has continued going into its Q3 earnings release as the stock recently hit 52-week highs. Investors will be wondering if a strong report could continue accelerating the stock or if it is time for XOM to cool off.
Image Source: Zacks Investment Research
Q3 Outlook
The Zacks Consensus Estimate for XOM’s Q3 earnings is $3.88 per share, which would represent a +145% increase from Q3 2021. Sales for Q3 are expected to climb 56% at $115.19 billion. The operating environment has been very profitable for XOM and the Oil and Gas-Integrated-International Industry that’s currently in the top 23% of over 250 Zacks Industries.
Earnings estimates for the period have largely gone up from $3.20 at the beginning of the quarter. Year over year, XOM earnings are expected to climb 146% but slip -19% in FY23 at $10.62 per share as it faces an extremely tough-to-compete against year. Sales are expected to rise 51% this year and dip -7% in FY23 to $399.40 billion. However, earnings estimate revisions for this year and FY23 have countinued to climb, including positive revisions in the last seven days.
Performance & Valuation
Year to date XOM is up an impressive +76% to crush the S&P 500’s -20% and top the Oil & Gas Integrated Market’s +44%. Even better, over the last two years if you include XOM’s stellar dividend its total return is +286%. This crushed the benchmark and beat its Zacks Subindustry’s +196%.
Image Source: Zacks Investment Research
Despite the impressive rally, Exxon Mobil appears to be fairly valued. Trading around $107 per share, XOM has a P/E of 8.1X. This is above the industry average of 4.4X. However, XOM still trades at a considerable discount to its decade-high of 349.5X and is below the median of 17.7X.
Bottom Line
The broader rally in oil and gas stocks may continue to support XOM as well with fellow energy giant Chevron (CVX - Free Report) also edging toward highs. An earnings beat and strong guidance could further sustain XOM’s rally.
Exxon Mobil currently lands a Zacks Rank #2 (Buy) in correlation with rising earnings estimate revisions. XOM is in a top-rated industry and has an overall “A” VGM grade. Oil prices have also remained high, with crude oil climbing over $90 in October and currently at $88.63. Plus, XOM offers investors a solid 3.29% dividend yield at $3.52 per share.