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Exxon Mobil (XOM) Gains But Lags Market: What You Should Know

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Exxon Mobil (XOM - Free Report) closed at $69.40 in the latest trading session, marking a +0.32% move from the prior day. This change lagged the S&P 500's 1% gain on the day.

Coming into today, shares of the oil and natural gas company had lost 6.17% in the past month. In that same time, the Oils-Energy sector lost 2.49%, while the S&P 500 lost 1.22%.

Wall Street will be looking for positivity from XOM as it approaches its next earnings report date. This is expected to be November 1, 2019. On that day, XOM is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 43.84%. Our most recent consensus estimate is calling for quarterly revenue of $71.39 billion, down 6.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.02 per share and revenue of $276.74 billion. These totals would mark changes of -38.74% and -4.64%, respectively, from last year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.87% lower. XOM is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, XOM currently has a Forward P/E ratio of 22.9. This valuation marks a premium compared to its industry's average Forward P/E of 12.24.

Investors should also note that XOM has a PEG ratio of 2.09 right now. 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. XOM's industry had an average PEG ratio of 1.68 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 11% 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.

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


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