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

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In the latest trading session, Exxon Mobil (XOM - Free Report) closed at $48.42, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.43%.

Heading into today, shares of the oil and natural gas company had gained 11.24% over the past month, outpacing the Oils-Energy sector's gain of 8.65% and the S&P 500's gain of 3.86% in that time.

Investors will be hoping for strength from XOM as it approaches its next earnings release, which is expected to be February 2, 2021. In that report, analysts expect XOM to post earnings of $0.01 per share. This would mark a year-over-year decline of 97.56%. Meanwhile, our latest consensus estimate is calling for revenue of $48.58 billion, down 27.67% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for XOM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.48% higher. XOM is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that XOM has a Forward P/E ratio of 29.79 right now. Its industry sports an average Forward P/E of 22.03, so we one might conclude that XOM is trading at a premium comparatively.

Also, we should mention that XOM has a PEG ratio of 7.72. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 3.78 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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