NEW YORK (TheStreet) -- Shares of Exxon (XOM) - Get Report dropped 6% for the month of July as a result of tumbling oil prices and disappointing second-quarter earnings, CNBC's Michelle Caruso-Cabrera reported on "Power Lunch" Friday.
Wolfe Research analyst Paul Sankey has the stock as an "underperform" and Cowen and Co. analyst Sam Margolin has the stock as an "outperform".
Sankey prefers Chevron (CVX) to Exxon because he thinks the company's outlook remains positive in terms of volume and in terms of leverage to oil prices relative to less refining.
Chevron's asset base is deeper considering its size in terms of production is significantly smaller than Exxon's, he said.
"From here we think Chevron is clearly a better play," Sankey said.
Margolin prefers Chevron as well, but says part of Exxon's performance year-to-date is a result of a broader push towards yield from investors.
Exxon will use this period of weakness to strengthen itself long-term.
"I think a lot of investors expect to see some sort of acquisition," he said.
The company acquired InterOil (IOC) earlier this month for $2.5 billion and investors expect more of that while the price point is low, he explained.
Exxon's yield appears sustainable which Margolin says is driving the stock.
Crude Oil (WTI) is up by 0.83% to $41.48 and Brent crude is down by 0.49% to $42.49 this afternoon.
Shares of Exxon are down by 1.90% to $88.49 this afternoon.
Separately, TheStreet Ratings team has this stock set as a "hold" with a ratings score of C. 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, the team also finds weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: XOM