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

Zacks Equity Research
·3 min read
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Exxon Mobil (XOM) closed the most recent trading day at $100.62, moving +1.44% from the previous trading session. This change lagged the S&P 500's 2.65% gain on the day. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the oil and natural gas company had gained 6.42% over the past month, outpacing the Oils-Energy sector's loss of 4.88% and the S&P 500's loss of 8.99% 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 October 28, 2022. In that report, analysts expect Exxon Mobil to post earnings of $3.59 per share. This would mark year-over-year growth of 127.22%. Meanwhile, our latest consensus estimate is calling for revenue of $119.12 billion, up 61.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.14 per share and revenue of $439.92 billion, which would represent changes of +144.24% and +54.01%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Exxon Mobil. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 3.55% higher. Exxon Mobil currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Exxon Mobil's current valuation metrics, including its Forward P/E ratio of 7.55. This valuation marks a premium compared to its industry's average Forward P/E of 3.89.

We can also see that XOM currently has a PEG ratio of 0.3. 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 industry currently had an average PEG ratio of 0.38 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 45, putting it in the top 18% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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