#7 - Exxon Mobil (NYSE:XOM)
Exxon Mobil (NYSE: XOM) Exxon Mobil is another oil and gas stock that saw a stiff decline in their stock price during the month of October. The stock plummeted 6.3% which put it into the red at -0.7% for 2018. XOM recently reported positive earnings for the third quarter, but questions remain as to whether the recent positive earnings trends will continue. On November 8, oil officially entered into a bear market territory, and that tends to reflect negatively on the stock prices of major energy providers. However, there are some fundamental concerns about Exxon Mobil’s stock that are making investors nervous. One is falling production. When an oil company is seeing a decline in production, it means their business is shrinking. The company saw a 2.7% decline in 2016 and 2017. By itself, this wasn’t too concerning for investors, but production declines have continued into 2018 when oil was surging. And in their Q2 earnings call, Exxon essentially told their shareholders that they were focusing on long-term plans, which meant that in the short-term, their growth may continue to decline. Another fundamental trend that is working against the stock is that Exxon’s return on invested capital has moved from being among the best in its sector to somewhere in the middle of the road. Once again, Exxon is staying committing to their long-term plans, but it remains to be seen if that approach will pacify investors.
About Exxon Mobil
Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas.
Read More - Current Price
- $105.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $128.74 (22.4% Upside)
2018 was a good year for many stocks that are part of the Dow Jones Industrial Index. So when a company is lagging behind the index, investors notice. The seven stocks in this report are all, at this writing, trading in the red for 2018. For some of these stocks, their descent into negative territory was due to the October correction. However, each of these stocks has one or more issues that are weighing on investors' minds. Whether it trades in a sector that looks to be reversing, in the process of a messy merger, or perhaps waiting on long-term plans to materialize, these seven stocks are not a clear buy as we enter 2019.
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