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Here's Why Exxon Mobil (XOM) Fell More Than Broader Market

In the latest market close, Exxon Mobil (XOM) reached $99.11, with a -1.32% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.59%.

Heading into today, shares of the oil and natural gas company had lost 3.62% over the past month, lagging the Oils-Energy sector's loss of 3.15% and the S&P 500's gain of 5.08% in that time.

Investors will be eagerly watching for the performance of Exxon Mobil in its upcoming earnings disclosure. In that report, analysts expect Exxon Mobil to post earnings of $2.14 per share. This would mark a year-over-year decline of 37.06%. In the meantime, our current consensus estimate forecasts the revenue to be $92.85 billion, indicating a 2.71% decline compared to the corresponding quarter of the prior year.

XOM's full-year Zacks Consensus Estimates are calling for earnings of $9.24 per share and revenue of $352.04 billion. These results would represent year-over-year changes of -34.28% and -14.9%, respectively.

It is also important to note the recent changes to analyst estimates for Exxon Mobil. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. Exxon Mobil currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Exxon Mobil is currently trading at a Forward P/E ratio of 10.88. This represents a premium compared to its industry's average Forward P/E of 6.75.

We can additionally observe that XOM currently boasts a PEG ratio of 3.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.82 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.

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.

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

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

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Zacks Investment Research