In the latest trading session, Exxon Mobil closed at $55.68, marking a 0.2% move from the previous day. This change outpaced the benchmark S&P 500’s 0.18% gain on the day.
Coming into today, shares of the oil and natural gas company had lost 1.09% in the past month. In that same time, the Oils-Energy sector lost 0.15%, while the S&P 500 gained 6.99%.
Exxon will be looking to display strength as it nears its next earnings release on Friday, April 30, 2021. In that report, analysts expect Exxon to post earnings per share (EPS) of $0.59, which would mark year-over-year growth of 11.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $55.16 billion, down 1.78% from the year-ago period.
For the full year, Zacks Consensus Estimates are projecting Exxon’s EPS to be $3.27 and revenue of $228.53 billion, which would represent changes of +1090.91% and +25.91%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Exxon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model that considers these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from number 1 (Strong Buy) to number 5 (Strong Sell), has an impressive outside-audited track record of outperformance, with number 1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, the consensus EPS projection has moved 11.33% higher. Exxon is holding a Zacks Rank of number 1 (Strong Buy) right now.
In terms of valuation, Exxon is currently trading at a Forward P/E ratio of 17.01. This represents a premium compared to its industry’s average Forward P/E of 10.12.
Investors should also note that Exxon has a PEG ratio of 1.79 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Oil and Gas – Integrated – International industry currently had an average PEG ratio of 0.73 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 5, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.