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

Exxon Mobil (XOM) closed at $71.14 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the oil and natural gas company had gained 15.94% in the past month. In that same time, the Oils-Energy sector gained 7.1%, while the S&P 500 gained 0.12%.

Exxon Mobil will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2022. On that day, Exxon Mobil is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 5866.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $79.12 billion, up 70% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Exxon Mobil. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.65% higher within the past month. Exxon Mobil is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Exxon Mobil has a Forward P/E ratio of 11.58 right now. For comparison, its industry has an average Forward P/E of 6.31, which means Exxon Mobil is trading at a premium to the group.

We can also see that XOM currently has a PEG ratio of 0.81. 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 0.67 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 76, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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