Exxon Mobil Outperforms Market Despite Expected Earnings Decline: Key Facts and Valuation Analysis
Exxon Mobil (XOM) closed the most recent trading day at $114.00, marking a +1.35% increase from the previous session. The stock outperformed the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow lost 0.7%, and the technology-focused Nasdaq decreased by 0.91%.
Prior to today's trading, Exxon Mobil shares had gained 3.97%, outpacing the Oils-Energy sector's 0% loss and the S&P 500's 1.44% gain. Investors are eagerly awaiting Exxon Mobil's upcoming earnings disclosure, where analysts expect the company to post earnings of $1.47 per share, a year-over-year decline of 31.31%. The consensus revenue estimate for the quarter is $81.62 billion, reflecting a 12.29% fall from the equivalent quarter last year.
Looking at the full year, Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $328.8 billion, marking changes of -21.57% and -5.95%, respectively, from last year. It's also worth noting that recent changes to analyst estimates for Exxon Mobil often mirror the shifting dynamics of short-term business patterns, with upbeat changes indicating a favorable outlook on the company's health and profitability.
Exxon Mobil currently has a Zacks Rank #3 (Hold), which is based on a system that takes estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell), with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.29% lower.
In terms of valuation, Exxon Mobil is currently trading with a Forward P/E ratio of 18.42, indicating a premium compared to its industry's Forward P/E of 10.93. The company also has a PEG ratio of 2.25, which takes into account the stock's expected earnings growth rate. As of yesterday's market close, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.86.
Exxon Mobil is part of the Oils-Energy sector, with its current Zacks Industry Rank of 203, which ranks in the bottom 18% of all industries, numbering over 250. The Zacks Industry Rank evaluates the power of distinct industry groups by determining the average Zacks Rank of individual stocks within those groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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