Exxon Mobil (XOM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Exxon Mobil (XOM) closed at $108.96, marking a +1.72% move from the previous day. This change outpaced the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Heading into today, shares of the oil and natural gas company had lost 2.54% over the past month, outpacing the Oils-Energy sector's loss of 4.02% and lagging the S&P 500's gain of 0.27% in that time.
Wall Street will be looking for positivity from Exxon Mobil as it approaches its next earnings report date. This is expected to be April 28, 2023. The company is expected to report EPS of $2.44, up 17.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $87.44 billion, down 3.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.95 per share and revenue of $351.33 billion. These totals would mark changes of -29.23% and -15.07%, respectively, from last year.
Any recent changes to analyst estimates for Exxon Mobil should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 3.67% lower. Exxon Mobil is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Exxon Mobil is holding a Forward P/E ratio of 10.76. This represents a premium compared to its industry's average Forward P/E of 5.51.
We can also see that XOM currently has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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