Exxon Mobil Corporation (XOM) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified Exxon Mobil Corporation (XOM) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Exxon Mobil Corporation

(

XOM

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Exxon Mobil Corporation as such a stock due to the following factors:

  • XOM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
  • XOM has traded 13.2 million shares today.
  • XOM traded in a range 208.3% of the normal price range with a price range of $3.26.
  • XOM traded above its daily resistance level (quality: 132 days, meaning that the stock is crossing a resistance level set by the last 132 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on XOM:

Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. The stock currently has a dividend yield of 3.5%. XOM has a PE ratio of 15. Currently there are 4 analysts that rate Exxon Mobil Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Exxon Mobil Corporation has been 15.7 million shares per day over the past 30 days. Exxon Mobil has a market cap of $342.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.88 and a short float of 1.6% with 4.92 days to cover. Shares are down 10.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Exxon Mobil Corporation as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • XOM's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that XOM's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
  • XOM, with its decline in revenue, slightly underperformed the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 33.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 52.3% when compared to the same quarter one year ago, falling from $8,780.00 million to $4,190.00 million.
  • The share price of EXXON MOBIL CORP has not done very well: it is down 13.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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