Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Two stocks – Exxon Mobil (XOM - Free Report) and Netflix (NFLX - Free Report) – have recently received price target upgrades. Below is a chart illustrating the performance of both stocks in 2023, with the S&P 500 blended in as a benchmark.
As we can see, both stocks have underperformed relative to the S&P 500 in 2023. It raises a valid question – how do they currently stack up? Let’s take a closer look.
Exxon Mobil
Exxon Mobil is a U.S.-based oil and gas entity, one of the world's largest publicly traded energy companies. Just recently, UBS upgraded XOM shares to Buy from Neutral, with a new $144 per share price target.
The energy titan posted somewhat mixed results in its latest release, exceeding EPS expectations by roughly 2.4% but posting a negative 5.6% revenue surprise.
Still, the company’s revenue growth has undoubtedly been strong amid increased energy prices, as we can see in the chart below.
In addition, Exxon Mobil’s cash-generating abilities have been amplified; XOM generated $17.1 billion in free cash flow throughout its latest quarter, up more than 30% compared to the year-ago quarter.
Netflix
UBS raised its PT for Netflix shares to $390 per share from $350 per share. The streaming titan reported Q1 results yesterday on April 18th; results came in somewhat mixed, with the company posting a modest EPS beat but falling marginally short of revenue expectations. In addition, paid net subscriber adds totaled +1.8 million, well above the year-ago quarter’s results of -200k.
NFLX shares aren’t necessarily cheap, with the company’s 4.3X forward price-to-sales residing on the higher end of the spectrum. Still, on a relative basis, the value is well below the steep 7.6X five-year median and highs of 8.9X in 2022.
The company’s earnings outlook has inched higher across multiple timeframes as of late, indicating bullish sentiment from analysts.
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, both stocks above – Exxon Mobil (XOM - Free Report) and Netflix (NFLX - Free Report) – have received price target upgrades.
As mentioned previously, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
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Many investors are familiar with price targets, as they represent analysts’ expectations of a stock’s future price.
Of course, analysts interpret many factors, including fundamental and technical, when calculating these levels.
In addition, price targets can be helpful for investors, helping to provide a more structured trade with pre-determined exit levels. However, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
Two stocks – Exxon Mobil (XOM - Free Report) and Netflix (NFLX - Free Report) – have recently received price target upgrades. Below is a chart illustrating the performance of both stocks in 2023, with the S&P 500 blended in as a benchmark.
As we can see, both stocks have underperformed relative to the S&P 500 in 2023. It raises a valid question – how do they currently stack up? Let’s take a closer look.
Exxon Mobil
Exxon Mobil is a U.S.-based oil and gas entity, one of the world's largest publicly traded energy companies. Just recently, UBS upgraded XOM shares to Buy from Neutral, with a new $144 per share price target.
The energy titan posted somewhat mixed results in its latest release, exceeding EPS expectations by roughly 2.4% but posting a negative 5.6% revenue surprise.
Still, the company’s revenue growth has undoubtedly been strong amid increased energy prices, as we can see in the chart below.
In addition, Exxon Mobil’s cash-generating abilities have been amplified; XOM generated $17.1 billion in free cash flow throughout its latest quarter, up more than 30% compared to the year-ago quarter.
Netflix
UBS raised its PT for Netflix shares to $390 per share from $350 per share. The streaming titan reported Q1 results yesterday on April 18th; results came in somewhat mixed, with the company posting a modest EPS beat but falling marginally short of revenue expectations. In addition, paid net subscriber adds totaled +1.8 million, well above the year-ago quarter’s results of -200k.
NFLX shares aren’t necessarily cheap, with the company’s 4.3X forward price-to-sales residing on the higher end of the spectrum. Still, on a relative basis, the value is well below the steep 7.6X five-year median and highs of 8.9X in 2022.
The company’s earnings outlook has inched higher across multiple timeframes as of late, indicating bullish sentiment from analysts.
Bottom Line
Price targets are commonly discussed in the market, giving investors a gauge of current sentiment surrounding the stock.
And recently, both stocks above – Exxon Mobil (XOM - Free Report) and Netflix (NFLX - Free Report) – have received price target upgrades.
As mentioned previously, it’s critical to remember that not all stocks reach analysts’ forecasted levels.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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