Exxon Mobil Corporation (XOM) Flagged As Today's Pre-Market Laggard

Trade-Ideas LLC identified Exxon Mobil Corporation ( XOM) as a pre-market laggard 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 $1.6 billion.
  • XOM traded 183,278 shares today in the pre-market hours as of 8:29 AM.
  • XOM is down 2.9% today from Friday's close.

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More details on XOM:

Exxon Mobil Corporation engages in refining and marketing 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 3.8%. XOM has a PE ratio of 16. Currently there are 6 analysts that rate Exxon Mobil Corporation a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Exxon Mobil Corporation has been 17.1 million shares per day over the past 30 days. Exxon Mobil has a market cap of $320.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.02 and a short float of 1.3% with 2.45 days to cover. Shares are down 0.1% 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, disappointing return on equity and weak operating cash flow.

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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • XOM, with its decline in revenue, slightly underperformed the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 37.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, EXXON MOBIL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The share price of EXXON MOBIL CORP has not done very well: it is down 12.47% 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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