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Exxon Mobil (XOM) Exceeds Market Returns: Some Facts to Consider

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Exxon Mobil (XOM - Free Report) ended the recent trading session at $117.36, demonstrating a +1.81% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.15%.

Coming into today, shares of the oil and natural gas company had lost 0.9% in the past month. In that same time, the Oils-Energy sector gained 0.29%, while the S&P 500 gained 2%.

Investors will be eagerly watching for the performance of Exxon Mobil in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.95, indicating a 14.1% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $94.5 billion, indicating a 4.12% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.06 per share and revenue of $362.45 billion, which would represent changes of -15.34% and +5.19%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Exxon Mobil. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 4.33% lower within the past month. Exxon Mobil currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Exxon Mobil is at present trading with a Forward P/E ratio of 14.31. This valuation marks a premium compared to its industry's average Forward P/E of 7.95.

Also, we should mention that XOM has a PEG ratio of 4.77. 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. XOM's industry had an average PEG ratio of 1.55 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 232, placing it within the bottom 9% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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