Exxon Mobil (XOM) Gains As Market Dips: What You Should Know

Exxon Mobil (XOM) ended the recent trading session at $114.19, demonstrating a +2.77% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.

Shares of the oil and natural gas company have appreciated by 5.85% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.17%, and the S&P 500's gain of 3.94%.

The upcoming earnings release of Exxon Mobil will be of great interest to investors. On that day, Exxon Mobil is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 31.31%. Meanwhile, our latest consensus estimate is calling for revenue of $81.5 billion, down 12.42% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.33 per share and a revenue of $329.42 billion, indicating changes of -18.74% and -5.77%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Exxon Mobil. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.66% higher within the past month. Exxon Mobil is currently a Zacks Rank #3 (Hold).

Digging into valuation, Exxon Mobil currently has a Forward P/E ratio of 17.55. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry.

Meanwhile, XOM's PEG ratio is currently 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 1.89.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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