Why the Market Dipped But Exxon Mobil (XOM) Gained Today

Exxon Mobil (XOM) closed the most recent trading day at $165.38, moving +2.64% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.37% for the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the oil and natural gas company had gained 6.88% in the past month. In that same time, the Oils-Energy sector gained 8.79%, while the S&P 500 lost 3.7%.

Market participants will be closely following the financial results of Exxon Mobil in its upcoming release. The company is forecasted to report an EPS of $1.66, showcasing a 5.68% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $82.47 billion, down 0.8% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.04 per share and revenue of $331.8 billion, indicating changes of +0.72% and -0.13%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Exxon Mobil. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.49% upward. Exxon Mobil currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Exxon Mobil is currently exchanging hands at a Forward P/E ratio of 22.87. For comparison, its industry has an average Forward P/E of 11.94, which means Exxon Mobil is trading at a premium to the group.

We can additionally observe that XOM currently boasts a PEG ratio of 1.26. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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