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 nearly $475 billion market cap, Exxon operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Exxon fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the oil & gas industry. The company’s operations span over 60 countries and employs more than 62,000 people across the globe.
However, it's not all rainbows and sunshine, XOM stock has tanked 12.8% from its all-time high of $126.34 touched on Oct. 7, 2024. Meanwhile, the stock has plunged 6.4% over the past three months underperforming the Dow Jones Industrials Average’s ($DOWI) 3.3% dip during the same time frame.
Furthermore, Exxon has underperformed the DOW over the longer term as well. XOM stock gained 5.9% over the past 52 weeks, lagging behind DOW’s 11% surge during the same time frame.
To confirm the recent downturn, Exxon has remained consistently below its 200-day moving average since early December and below its 50-day moving average since late November 2024 with some fluctuations.
Exxon Mobil’s stock dipped 2.5% after the release of its mixed Q4 results on Jan. 31. Due to an unfavourable pricing mix, the company’s overall topline decreased 1.1% year-over-year to $83.4 billion which missed the Street’s expectations of $87.2 billion by a notable margin. Meanwhile, its non-GAAP EPS dropped 32.7% compared to the year-ago quarter to $1.67, however, the drop was anticipated and the company actually exceeded analysts’ consensus estimates by 7.7%, which mitigated the drop in stock prices.
On a more positive note, the company has showcased impressive expense management and saved $2.4 billion in 2024 by reducing its structural costs. Furthermore, it achieved an industry-leading return on capital employed of 12.7% during fiscal 2024.
Despite the underperformance compared to the broader market, Exxon’s performance looks much more attractive when compared to its competitor Chevron Corporation’s (CVX) 3% uptick over the past 52 weeks.
XOM has a consensus “Moderate Buy” rating among the 25 analysts covering the stock. Its mean price target of $129.58 indicates a 17.6% upside potential from current price levels.
