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Exxon Mobil (XOM) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Exxon Mobil (XOM - Free Report) closed at $107.80, marking a -1.44% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Shares of the oil and natural gas company have appreciated by 6.92% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.92%, and the S&P 500's gain of 4.27%.

The investment community will be closely monitoring the performance of Exxon Mobil in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.41, reflecting a 34.11% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $81.5 billion, indicating a 12.42% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.3 per share and revenue of $329.42 billion, which would represent changes of -19.13% and -5.77%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Exxon Mobil. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 2.72% higher. Exxon Mobil is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Exxon Mobil has a Forward P/E ratio of 17.36 right now. For comparison, its industry has an average Forward P/E of 11.18, which means Exxon Mobil is trading at a premium to the group.

It is also worth noting that XOM currently has a PEG ratio of 2.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 25% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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