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.
On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
