Spring, Texas-based Exxon Mobil Corporation (XOM) operates as the largest American oil & gas company. It engages in the exploration and production of crude oil and natural gas in the U.S. and internationally. Valued at a $474.8 billion market cap, Exxon operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
The energy giant has notably underperformed the broader market past year. XOM stock has gained 5.4% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 22.6% surge during the same time frame. On a YTD basis, XOM has increased nearly 1%, lagging behind the SPX’s 2.7% gains.
Narrowing the focus, although Exxon has surpassed the SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 2.9% gains over the past year, it has underperformed XOP’s 4.4% returns on a YTD basis.
Exxon Mobil’s stock prices dipped nearly 1.6% after the release of its Q3 results on Nov. 1. The company observed a marginal 82 basis point decline in topline compared to the year-ago quarter to $90 billion which missed the Street’s expectations by a notable margin. While the company’s results were impacted due to a slump in oil margins, it was mostly offset by record liquids production in over 40 years with 3.2 million barrels per day and record high-value product sales volumes in Product Solutions. This led to its adjusted EPS of $1.92 surpassing the consensus estimates by a small margin.
Exxon is set to unveil its full-year earnings before the market opens tomorrow, and analysts anticipate an 18.7% year-over-year decline in its adjusted EPS to $7.74. XOM’s earnings surprise history is mixed. While the company has surpassed the consensus estimates thrice over the past four quarters, it has missed the projections on one other occasion.
However, analysts remain optimistic about the stock’s longer-term prospects. XOM has a consensus “Moderate Buy” rating overall. Among the 24 analysts covering the stock, 15 recommend “Strong Buy,” eight suggest “Hold,” and one advises a “Strong Sell” rating.
This configuration is slightly more bullish than two months ago when 14 analysts recommended a “Strong Buy” rating.
On Jan. 13, Truist Securities analyst Neal Dingmann maintained a “Hold” rating on the stock, while raising the price target to $119.
XOM’s mean price target of $129.91 indicates a 19.5% premium to current price levels. While its street-high target of $147 suggests a 35.3% upside potential.
