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Exxon Mobil stock dips as EV sector grows, analyst ratings hold firm

EditorHari Govind
Published 11/22/2023, 09:56 AM
Updated 11/22/2023, 09:56 AM
© Reuters.

Analysts maintain a favorable outlook on Exxon Mobil Corp. (NYSE:XOM), despite the company's shares closing slightly lower today at $104.46, valuing the company at $418.54 billion—15.54% below its yearly high but 6.17% above its yearly low. Following a report from BloombergNEF indicating a significant 53% increase in annual electric vehicle (EV) spending to $388 billion, Exxon Mobil finds itself in an industry experiencing rapid growth.

The stock reached weekly highs on Monday at $105.88 before closing just under that mark, reflecting the stock's recent performance within its 52-week range of $98 to approximately $121. Despite robust sales growth over five years, Exxon has seen declining yearly earnings per share. The company manages four billion shares and employs 62,000 individuals, contributing to solid profit margins across gross (+25%), operating (+16%), and pretax (+19%) categories.

Recent insider trading activity shows multimillion-dollar acquisitions made in early November, contrasting with significant sales in early September, signaling insider confidence amid broader market trends. Quarterly financials released in late September highlighted missed earnings expectations but strong net margins near 14% and high return on equity figures.

Analysts project current fiscal year earnings per share just above $2, with long-term EPS growth expected to rise by 45% within the next five years. Trading metrics underscore Exxon's sound liquidity status, with valuation ratios like price-to-sales near 1.21 and free cash flow valuations calculated around eleven times trailing twelve-month figures.

Institutional ownership remains significant, making up over 60% of Exxon's shares, with Vanguard Group Inc. and Blackrock (NYSE:BLK) Inc. being predominant investors as of June 29—holding nearly 10% and just over 7%, respectively. Despite facing a year-to-date downside of -5.28% and a monthly slide of -4.55%, analysts uphold an Overweight rating on XOM with no Sell ratings among 28 analysts; four recommend Overweight status while eleven opt for Hold and thirteen suggest Buy—with expectations for an EPS of $2.2 this quarter.

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Wall Street analysts propose that XOM could reach their target price of $127.64—an 18% potential increase. Revenue projections show Exxon Mobil’s current quarter down by -35.30% compared to last year’s same period—estimated around $87 billion—with next quarter sales forecasted to grow by 5%. Dividend yields are stated at 3.55% annually ($3.70 per share), anticipating the next earnings report between January 29 and February 2.

Recent technical analyses illustrate increased market activity with volumes rising above 20 million compared to last year’s daily average while volatility rates appear more subdued recently, signaling less erratic stock movements than historically noted. Investors are directed towards complimentary reports spotlighting leading EV tech stocks recommended for acquisition this year as the sector gains momentum.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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