Current Market Position
Exxon Mobil Corporation (XOM) is a global energy giant headquartered in Irving, Texas. Its stock has been publicly traded on the New York Stock Exchange since 1920. As of today, March 8, 2023, XOM stock is trading at $112.55 per share.
Historical Performance
Over the past decade, XOM stock has experienced significant fluctuations. In 2014, it reached a peak of $105.26 per share, but by 2020, it had fallen to $31.36 per share due to the COVID-19 pandemic and the resulting collapse in oil prices. However, since then, the stock has rebounded strongly, reaching its current all-time high.
Fundamental Analysis
Exxon Mobil’s strong financial performance has been a key driver of its stock price appreciation. In 2022, the company reported net income of $55.7 billion on revenue of $367.8 billion. This represents a significant increase from 2021, when the company reported net income of $23 billion on revenue of $285.6 billion.
Technical Analysis
From a technical perspective, XOM stock is currently in a bullish trend. The stock’s 50-day moving average is above its 200-day moving average, indicating that the stock is trending higher. Additionally, the stock’s relative strength index (RSI) is above 70, indicating that the stock is overbought.
Analysts’ Expectations
Analysts are generally bullish on Exxon Mobil stock. The average price target for XOM stock is $130 per share, implying a potential upside of over 15% from the current price. Some analysts believe that the stock could reach $150 per share in 2025.
Key Factors to Consider
Several key factors could impact Exxon Mobil’s stock price in the coming years, including:
- Oil Prices: Exxon Mobil’s revenue is heavily dependent on oil prices. If oil prices decline, it could negatively impact the company’s financial performance and stock price.
- Government Regulations: Exxon Mobil is facing increasing pressure from governments around the world to reduce its carbon emissions. This could lead to increased costs and reduced profitability, which could impact the stock price.
- Technological Advancements: Advancements in renewable energy technologies could pose a long-term threat to Exxon Mobil’s business. If consumers and businesses shift to renewable energy sources, it could reduce demand for oil and gas, which could negatively impact Exxon Mobil’s stock price.
Conclusion
Overall, Exxon Mobil stock is a solid investment with a strong track record of performance. The company’s strong financial performance, favorable technical analysis, and positive analyst consensus suggest that the stock is likely to continue to perform well in the coming years. However, investors should be aware of the key factors that could impact the stock price and adjust their investment strategy accordingly.
Additional Insights
Common Mistakes to Avoid
When investing in Exxon Mobil stock, investors should avoid the following common mistakes:
- Investing without understanding the company: Investors should thoroughly research Exxon Mobil’s business model, financial performance, and competitive landscape before investing.
- Buying at the peak: Investors should avoid buying XOM stock when it is near its all-time high. Instead, they should wait for a pullback or correction to enter a position.
- Panic selling: Investors should avoid panic selling their XOM stock during periods of market volatility. Instead, they should focus on the company’s long-term fundamentals and ride out the short-term fluctuations.
Pros and Cons of Investing in Exxon Mobil Stock
Pros:
- Strong financial performance with consistent dividend payments
- Leader in the global energy industry
- Favorable technical analysis and analyst consensus
- Potential for continued growth in the coming years
Cons:
- Dependence on oil prices
- Facing pressure to reduce carbon emissions
- Technological advancements could pose a long-term threat
Reviews
1. Morningstar: “Exxon Mobil is a well-managed company with a strong financial position. The stock is currently trading at a fair value and could provide investors with solid returns over the long term.”
2. Zacks Investment Research: “Exxon Mobil is a high-quality stock with a strong track record of dividend growth. The stock is currently trading at a reasonable valuation and offers investors a good entry point.”
3. The Motley Fool: “Exxon Mobil is a solid investment for long-term investors. The company’s strong financial performance and favorable technical analysis suggest that the stock is likely to continue to perform well in the coming years.”
4. Seeking Alpha: “Exxon Mobil is a defensive stock that can provide investors with stability during periods of market volatility. The stock’s high dividend yield and strong fundamentals make it a good choice for income investors.”
Data Tables
1. Exxon Mobil’s Financial Performance (2018-2022)
Year | Revenue (USD billions) | Net Income (USD billions) | Earnings per Share (USD) |
---|---|---|---|
2018 | 290.2 | 20.8 | 5.02 |
2019 | 285.6 | 23.0 | 5.55 |
2020 | 178.6 | 2.0 | 0.48 |
2021 | 285.6 | 23.0 | 5.55 |
2022 | 367.8 | 55.7 | 13.32 |
2. Exxon Mobil’s Stock Prices (2018-2023)
Date | Stock Price (USD) | Percentage Change |
---|---|---|
March 8, 2018 | 82.50 | – |
March 8, 2019 | 73.25 | -11.2% |
March 8, 2020 | 31.36 | -57.7% |
March 8, 2021 | 53.32 | 70.1% |
March 8, 2022 | 94.70 | 77.6% |
March 8, 2023 | 112.55 | 18.8% |
3. Exxon Mobil’s Analyst Consensus (March 8, 2023)
Firm | Rating | Price Target (USD) |
---|---|---|
Goldman Sachs | Buy | 135 |
JPMorgan Chase | Buy | 125 |
Morgan Stanley | Hold | 110 |
Bank of America | Buy | 140 |
Wells Fargo | Buy | 130 |
4. Exxon Mobil’s Key Statistics (March 8, 2023)
Statistic | Value |
---|---|
Market Cap (USD billions) | 454.2 |
P/E Ratio | 8.5 |
P/B Ratio | 2.1 |
Dividend Yield | 3.4% |