Texas-based Exxon Mobil Corporation (XOM) is a dominant force in the global oil and gas industry, valued at $451.28 billion by market cap. Operating through both upstream and downstream segments, XOM commands a comprehensive presence across the entire value chain, from exploration and production to refining and marketing. Competing fiercely with other energy titans, XOM's main rival is Chevron Corporation (CVX), which also has a strong presence in both upstream and downstream operations.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and XOM fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the energy sector. The oil giant has pivoted toward innovation and self-reliance through multiple acquisitions throughout the past years.
Shares of XOM are currently trading 7.5% below their 52-week high of $123.75, which they hit on Apr. 12. However, XOM has gained 8.2% over the past three months, outshining the Vanguard Mega Cap ETF’s (MGC) 3.1% returns over the same time frame.
Over the longer term, XOM has performed well, with a YTD gain of 13.3% and a 7.1% increase over the past 52 weeks. In comparison, the MGC has gained 12.1% in 2024 and achieved a significant 25.3% gain over the past year.
To confirm the bullish price trend, XOM has been trading above its 200-day moving average since early March.
Exxon Mobil's shares reached their peak, positioning the company towards a half-trillion-dollar market cap. Investors remain optimistic due to steady oil demand despite high interest rates. With robust cash reserves, XOM has reduced debt and effectively funded acquisitions, buybacks, operations, and dividends.
Highlighting the contrast in performance, XOM's top competitor, Chevron, has lagged behind both XOM and the mega-cap ETF. Over the last 52 weeks, CVX has experienced a marginal decline, although it has gained 4.6% YTD.
Given its robust price performance, analysts are moderately optimistic about XOM's prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $135 reflects an 18% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
