Yahoo Finance Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Exxon Mobil (XOM)
ExxonMobil's bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management's track record of capex discipline across the commodity price cycle make it a relatively lower-risk energy sector play.
The company's upstream portfolio has not generated much production growth in 2019 and the trend isn't expected to change at least in the near term. It nevertheless owns some of the most prolific upstream assets globally. Other aspects of the company's story include the largest global refining operations, substantial chemicals assets and a dividend history and credit profile that are second to none in the space.
As compared to other energy giants, ExxonMobil's capital spending discipline is quite aggressive. The company has a plan in place to allocate significant proportion of its budget to key oil and gas projects that include offshore Guyana resources and Permian - the most prolific shale play in the United States.
Needless to say, the company's business perspective looks different from most peers since big oil rivals have pledged to lower carbon emissions to tackle climate change.
XOM is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 8.2X for the current fiscal year compared to the Oil and Gas - Integrated - International industry's P/E of 4.9X. Additionally, XOM has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 11X. Value investors should also note XOM's Price/Sales ratio of 1.2X.
A company's earnings performance is important for value investors as well. For fiscal 2022, seven analysts revised their earnings estimate higher in the last 60 days for XOM, while the Zacks Consensus Estimate has increased $1.22 to $13.92 per share. XOM also holds an average earnings surprise of 5.1%.
Investors should take the time to consider XOM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
