Why is Exxon not doing well?
Exxon Mobil (NYSE:XOM) took an impairment charge at the end of fiscal year 2020 because "clearly natural gas prices were never coming back" therefore the natural gas assets were impaired because the value of the assets would not be recovered by future prices.Feb 18, 2022
Is Exxon stock a good buy right now?
Exxon Mobil currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.Mar 9, 2022
Why is Exxon so cheap?
Conclusion. In conclusion, we see the recent weakness in Exxon's stock as a unique opportunity to own the company at one of its cheapest valuations in years. This is due to the combination of large margin enhancements made during the depths of the Pandemic as well as the impressive recovery in the price of oil.Sep 24, 2021
Is XOM buying back stock?
1, Exxon reported a strong fourth quarter, and announced a $10 billion stock buyback plan. The company also said that it had paid back almost all of the debt it took out during the depths of the pandemic. We noted that the report reflects “a remarkable turnaround for the oil giant.”Feb 11, 2022
Is Exxon a buy hold or sell?
Exxon Mobil has received a consensus rating of Hold. The company's average rating score is 2.35, and is based on 8 buy ratings, 12 hold ratings, and 2 sell ratings.
Is Exxon stock expected to rise?
Stock Price Forecast The 24 analysts offering 12-month price forecasts for Exxon Mobil Corp have a median target of 90.00, with a high estimate of 166.00 and a low estimate of 75.00. The median estimate represents a +2.52% increase from the last price of 87.79.
Who invests in Exxonmobil?
Top 10 Owners of Exxon Mobil CorpStockholderStakeTotal changeBlackRock Fund Advisors4.63%+1.02%Fidelity Management & Research Co...1.68%+11.71%Geode Capital Management LLC1.67%+5.11%Norges Bank Investment Management1.23%+30.11%6 more rows
Why is Exxon stock so high?
Exxon (NYSE:XOM) stock could see a major rise in the coming months with price predictions for crude oil increasing due to the war between Russia and Ukraine. The rising price of crude oil means that consumers are going to face higher prices for fuel.Mar 3, 2022
Is Chevron a buy or sell?
Market analysts have CVX as an "overweight" ranking with 21 out of 31 rankings being Buy or Overweight and only two Underweight or Sell. Seeking Alpha contributors also rate CVX high with 16 Buys and zero Sells. So all in all, Chevron is a very popular stock with analysts.Mar 22, 2022
How many shares of XOM are currently outstanding?
4.23BShare StatisticsAvg Vol (3 month) 333.54MShares Outstanding 54.23BImplied Shares Outstanding 6N/AFloat 84.23B% Held by Insiders 10.10%7 more rows
What is the highest Exxon Mobil stock has ever been?
The all-time high Exxon stock closing price was 104.38 on June 23, 2014. The Exxon 52-week high stock price is 91.50, which is 5.4% above the current share price. The Exxon 52-week low stock price is 52.10, which is 40% below the current share price.
Valuing Exxon Stock With Historical Yield
As XOM stock has kept falling, the company’s $3.48 per share dividend works out to an annualized dividend yield of 6.45%. That is up from 6.32% last month when I wrote about Exxon stock.
What To Do With XOM Stock
Everyone hates energy stocks these days. In a nutshell, that’s why it’s so cheap. Institutional funds, following ESG (environmental, social, and governance) seem to think that energy stocks like Exxon are not worth investing in. The reality is that energy companies are going to be around for a long time.
Oil Is Slipping
In fairness to XOM, part of the weakness in energy stocks is due to crude oil rolling over this month. From the August peak of $43.78 to last week’s trough of $36.13, black gold slipped 17.5%. Along the way, it shattered the 200-day, 50-day and 20-day moving averages, officially reversing the uptrend that had been in place since April.
Exxon Mobil Stock Charts
The persistent weakness is on full display in the weekly time frame. It is a stark reminder that not all industries have enjoyed the glorious recovery seen by tech stocks. By declining back to $36, the year-to-date loss in Exxon Mobil stock has grown to 48%. All major moving averages continue to barrel down on the price.
How to Trade XOM Now
I am as interested in buying as the next guy, but we have to see signs of a trend reversal first. Until then, I suggest patience. As for the bearish side of things, I do like playing Exxon Mobil on the short side, but it’s challenging to advocate a new entry here. The reward to risk ratio leaves much to be desired given its oversold status.
What are the risks of Exxon?
1. A changing landscape. One of the biggest risks to Exxon's future is the ongoing global shift toward low carbon energy options. The big fear is that oil and natural gas fall out of use so quickly that Exxon is left with energy assets that have little to no value. This isn't an unreasonable concern, but timing matters.
How much did Exxon pay in dividends?
Meanwhile, the company's capital investments, even after cost cuts, came in at around $21 billion. On top of that sum, Exxon paid $14.9 billion in dividends and remains committed to supporting its quarterly payments.
How long does it take for the world to transition from coal to oil?
Image source: Getty Images. Exxon has pointed out that energy transitions take a very long time, with the shift from coal to oil lasting about 100 years. In other words, while the world is shifting to things like solar and wind power, it could be a very long time before oil and natural gas are out of the picture.
Is drilling for oil and natural gas capital intensive?
One other problem here is that drilling for oil and natural gas is a capital-intensive process. And since the products Exxon produces are commodities, its top and bottom lines can, and do, vary considerably from year to year.
Is Exxon a commodity?
Although already noted, it is important to keep in mind that the core of Exxon's business is built around commodity products. That means it has little control over its top line. And while costs are within the company's control, the business is capital intensive by nature. So Exxon is always on a tightrope, trying to balance revenues and expenses. When oil prices are extremely high that's an easy effort, but when they are low it requires a lot more finesse.
Oil Market Is Finally Starting to Cut Supply
People aren’t great at timing economic cycles. Folks often buy when things seem brightest, and give up hope right near the bottom. Unfortunately, many corporate executives act the same way. The price of oil crashed from $100 to less than $50/barrel way back in 2014-15. Yet the energy industry kept up its drilling plans well into 2016.
Exxon Ready to Profit from the Next Oil Boom
From small E&P companies up to Exxon’s closest rivals, capital discipline has become the name of the game. Management teams have finally stopped spending on marginal products.
Exxon Stock Verdict
Many, perhaps even most, people own XOM stock for its dividend. If you read the above paragraphs as a growth investor, you might have been underwhelmed.
How much of Exxon's cash operating expenses is slashed?
Importantly, Exxon is on track to reach its cost reduction goals, including slashing 15% of its cash operating expenses and deferring over $10 billion in capital expenditures. Woods says the cost cuts are necessary to keep Exxon financially sound during a time when plunges in global auto sales and airline flights have led to a steep decline in oil demand.
Who is the CEO of Exxon?
CEO Darren Woods told Exxon's employees to expect layoffs, as low oil prices continue to plague the industry. "These are difficult times," Woods said. "We are making tough decisions, some of which will result in friends and colleagues leaving the company."
Why should Exxon Mobil cut its dividends?
While many analysts and investors believe that the company should cut its dividends to reduce the burden on its balance sheet , the company wants to take this step only as a last resort.
What are the factors that contributed to Exxon Mobil's survival?
1. A stronger balance sheet than global peers. One key factor that contributed to ExxonMobil's survival for more than 100 years is its financial discipline. With rising debt levels recently, though, investors are concerned that ExxonMobil isn't keeping up on this front.
Does Exxon Mobil have a positive correlation?
ExxonMobil stock generally has a high positive correlation with crude oil prices , which reflects the stock's dependence on oil prices. As the above chart shows, the stock's four-month correlation with WTI crude oil price is currently +0.3 -- much lower than what it has been historically.
Who is Rekha Khandelwal?
Rekha Khandelwal, CFA, is a long-term investor with a special focus on energy stocks. Rekha holds a master's in finance and has worked as a financial consultant. When she isn't writing, she can be found traveling to a new city or country.
Does Exxon Mobil have a correlation with oil prices?
While that's the right strategy for the long term, the company's -- and its stock's -- performance is nonetheless tied to oil prices.
Exxon stock has had a huge rally so far in 2019. Is it still a buy or have investors missed the boat?
Reuben Gregg Brewer believes dividends are a window into a company's soul. He tries to invest in good souls.
It's still cheap
Despite Exxon's big price run so far in 2019, it is still trading near a 30-year low when it comes to price to tangible book value. But the roughly 4% yield, while down from recent levels, is still higher than it's been since the mid-1990s. Investors are clearly reconsidering Exxon today, placing a higher value on its shares.
What's going on today
There are some pretty good reasons to be fond of Exxon in terms of valuation and business approach. But what's changed this year that has led to such an impressive rally? The answer is that Exxon appears to be turning an important corner operationally.
Act now or you could miss it
Exxon is certainly not as good a deal as it was at the end of 2018. But if you take a longer-term perspective, the oil giant remains a good value relative to its historical valuation and yield levels.
