Catch pre-market movers with AI signals.
The Zacks Analyst Blog Highlights ExxonMobil, BP and Chevron
For Immediate Release
Chicago, IL – September 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil Holdings CorporationXOM-- XOM, BP plcBP-- BP and ChevronCVX-- CVX.
Here are highlights from Thursday’s Analyst Blog:
ExxonMobil Stocks at Premium: Opportunity or Reason to Stay Focused?
ExxonMobil Holdings Corporation is trading at a premium, meaning investors are willing to pay more for the stock. On a relative basis, the stock is trading at a 9.16x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 5.89x. BP plc and Chevron are trading at 2.93x and 8.04x, respectively.
Given that the integrated energy giant is trading at a premium, what should investors do now? Before getting into it, let’s delve into the company’s fundamentals and overall business environment.
High Oil Price a Boon to XOM’s Operations?
West Texas Intermediate (“WTI”) crude is trading at more than the $95-per-barrel mark. The high prices are being driven by intensifying conflicts in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $84.65 per barrel this year, higher than $65.40 last year. A highly favorable oil pricing environment is likely to continue supporting ExxonMobil’s exploration and production activities, similar to BPBP-- and Chevron.
Importantly, upstream operations generate the majority of earnings for XOMXOM--. The company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing new drilling techniques and artificial intelligence to boost and optimize production volumes at lower cost structures.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Robust production from both assets has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
XOM’s Solid Balance & Dividend Commitment
Investors should also keep in mind that XOM has a strong balance sheet that can support it during an unfavorable business environment. The debt-to-capitalization of ExxonMobilXOM-- is 13.73%, significantly lower than 28.51% of the industry’s composite stocks.
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
What Should Investors Do Now?
The positive developments are reflected in the price chart. In the past year, XOM has jumped 46%, outpacing the industry’s 45.1% growth. BP and CVXCVX--, two other integrated players in the same space, have gained 31.4% and 35.5%, respectively.
Despite all the positive developments and elevated crude prices, it might not be the ideal time for investors to bet on ExxonMobil, as its valuation appears pricey. However, those who have already invested may hold the stock, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
ExxonMobil Holdings Corporation (XOM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks is the leading investment research firm focusing on equities earnings estimates and stock analysis for the individual investor, including stock picks, stock screening, portfolio stock tracker and stock screeners. Copyright 2006-2026 Zacks Equity Research, Inc. editor@zacks.com (Manaing editor) webmaster@zacks.com (Webmaster)
