Exxon Mobil Corporation (XOM) explores and produces crude oil and natural gas in the U.S. and internationally. Based in Spring, Texas, the energy giant is valued at $448.04 billion by market cap. It operates through the Upstream, Downstream, and Chemical segments. The company owns some of the most prolific upstream assets globally and the largest global refining operations. It also has substantial chemical assets.
Shares of the oil and gas giant have underperformed the broader market considerably over the past year. XOM has gained 8.6% over this time frame, while the S&P 500 Index ($SPX) has rallied 24.5%. But things are looking up in 2024 – Exxon Mobil stock is up 14%, surpassing the SPX’s 9.8% rise on a YTD basis.
Narrowing the focus, XOM’s gains over the past 52 weeks are overshadowed by the iShares U.S. Energy ETF (IYE). The exchange-traded fund has gained about 15.7% over the past year. However, XOM’s gains on a YTD basis outshine the ETF’s 8.7% returns over the same time frame.
XOM shares hit an all-time high of $123.75 on April 12, placing it on course to achieve a half-trillion-dollar market cap. Investors have been optimistic about the company’s prospects, as oil demand has remained solid despite the elevated interest rates. Given its strong cash reserves, XOM has managed to pare down debt and has been able to fund its acquisitions, buybacks, operations, and dividends.
For the current fiscal year, ending in December, analysts expect XOM to report EPS growth of 0.5% to $9.57 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 19 analysts covering XOM stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings and seven “Holds.”
This configuration is slightly more bullish than three months ago, with 11 suggesting a “Strong Buy.”
Recently, HSBC analysts raised the stock price from $111 to $120 while maintaining a Hold rating.
The mean price target of $135.18 represents an 18.6% premium to XOM’s current price levels. The Street-high price target of $152 suggests an upside potential of 33.3%.
On the date of publication, Dipanjan Banchur 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.
