Wall Street has eyes on Exxon Mobil as the oil stock looks to energize a new breakout ahead of Jan. 31 earnings. Analysts expect the energy leader to fuel 62% EPS growth for the quarter, capping a 159% gain for 2022.
XOM stock earns a spot on the IBD 50 as well as the IBD Breakout Stocks Index. Other oil stocks on the BOUT ETF, which tracks the index, include Diamondback Energy, BP, Oneok and Valaris.
Exxon Mobil also joins fellow energy sector and oil stocks Phillips 66, Northern Oil & Gas, Hess, BP, Haliburton on the latest list of new buys by the best mutual funds.
Alongside Hess, HF Sinclair, Valero Energy and TotalEnergies, XOM stock also made a stock screen highlighting today's top growth stocks. Each company predicts at least 100% EPS growth in the latest quarter.
See Who Joins XOM On The IBD Breakout Stocks Index
Exxon Mobil Expects To Double Earnings By 2027
Headquartered in Irving, Texas, Exxon Mobil is one of the world's largest energy and petrochemical companies.
Operating throughout the globe, it explores for oil and natural gas on six continents. Exxon Mobil also researches and develops next-generation technologies to meet the dual challenge of fueling global economies while addressing the risks of climate change.
While tech stocks struggled in 2022, oil stocks powered massive growth. Over the last three quarters of 2022, Exxon Mobil fueled average earnings of 226%. At the end of Q3, the company said it is on track with full-year profit guidance of $21 billion to $24 billion.
Sales growth has ranged from 52% to 71% from Q1 to Q3 of 2022, with revenue of $112.1 billion in the third quarter.
Last month, Exxon Mobil said it expects to double earnings and cash flow by 2027.
The energy giant also announced an expansion of its $30 billion share-repurchase program, which is now up to $50 billion through 2024. Plus, Exxon Mobil recently increased its annual dividend payment for the 40th consecutive year. By year-end 2022, it expects to distribute approximately $30 billion to shareholders, including $15 billion in dividends and $15 billion in share repurchases.
As one of the best dividend stocks to watch, Exxon Mobil pays a dividend currently yielding 3.2% on an annualized basis.
ESG Investing Report: See The Best 100 ESG Stocks And More
Oil Stocks Driving Responsible Growth
Acknowledging Exxon Mobil's growing record of environmental, social and governance performance, XOM secured a spot on IBD's list of the Best 100 ESG Stocks. Fellow oil stocks Hess, Oneok, Occidental Petroleum and ConocoPhillips also earned that ESG honor.
Exxon Mobil has allocated approximately $17 billion toward emission reductions and accretive third-party lower-emission initiatives through 2027.
In 2021, it announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. With advancements in technology and the support of clear and consistent government policies, the company aims to achieve net-zero Scope 1 (direct) and 2 (indirect) greenhouse gas emissions from operated assets by 2050.
Exxon Mobil Among Oil Stocks Testing Buy Zones
With Q4 earnings just two weeks away, Exxon Mobil is trading right around a 114.76 buy point in a flat base.
Since dropping below its 10-week moving average last month, XOM stock has successfully tested and reclaimed that benchmark. It now trades nicely above the 10-week line as it continues to work on its base. In a sign of rebounding technical strength, Exxon Mobil's 21-day moving average is starting to move back above its 50-day line.
Other oil stocks in or near fresh buy points and buy zones include HES, OKE, VAL and BP. FANG, COP, PSX and OXY stock are continue to prime new bases.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
