Exxon Mobil (XOM) Showing Signs Of Being A Momo Momentum Stock
Trade-Ideas LLC identified
(
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Exxon Mobil 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 a PE ratio of 3.
- XOM is currently in the upper 30% of its 1-year range.
- XOM is in the upper 25% of its 20-day range.
- XOM is in the upper 35% of its 5-day range.
- XOM is currently trading above yesterday's high.
- XOM has experienced a gap between today's open and yesterday's close of 1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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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 3.2%. XOM has a PE ratio of 3. Currently there are 5 analysts that rate Exxon Mobil a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Exxon Mobil has been 11.0 million shares per day over the past 30 days. Exxon Mobil has a market cap of $387.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.90 and a short float of 1.2% with 4.01 days to cover. Shares are up 20.4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Exxon Mobil as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- XOM's debt-to-equity ratio is very low at 0.25 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 0.51, displays a potential problem in covering short-term cash needs.
- The gross profit margin for EXXON MOBIL CORP is rather low; currently it is at 18.72%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 4.27% is above that of the industry average.
- EXXON MOBIL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EXXON MOBIL CORP reported lower earnings of $3.85 versus $7.60 in the prior year. For the next year, the market is expecting a contraction of 32.2% in earnings ($2.61 versus $3.85).
- You can view the full Exxon Mobil Ratings Report.
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