ExxonMobil’s performance on the stock market
We’ve familiarized ourselves with ExxonMobil (XOM) as a global energy giant. It’s one of the largest listed companies in the world. Now, let’s find out how the company has been doing on the stock market.
Giants don’t fall easy
The first thing that jumps out from the above chart is the sheer difference between the performances of the broad American market—represented here by the SPDR S&P 500 ETF (SPY)—and the upstream energy sector—represented here by the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
In the last six months that crude prices have more than halved, SPY is up ~5%. XOP is down almost 50%.
However, look closer. Another champion emerges. ExxonMobil is down ~10% during the same period.
This compares favorably to Chevron’s (CVX) roughly 15% fall. It also compares favorably to its global competitor Royal Dutch Shell Plc’s (RDS.A) more than 20% drop. During this time, the Energy Select Sector SPDR Fund (XLE) dropped ~25%
XLE is an ETF that tracks premier American energy companies. XOM accounts for ~17% of its holdings.
Best of a bad bunch
So, ExxonMobil stands out here on two counts. First, it’s one of the least negatively affected energy companies in the crude price retreat. This is a very strong technical indicator.
Second, we can’t assume that diving crude prices won’t take their toll on ExxonMobil. However, its relative performance indicates that there’s something about the company that gives it an edge in the energy complex.
This is why we decided to analyze ExxonMobil as a potential “must have in your energy portfolio.”
The rest of this series will start to analyze the company’s financial and operational state. The remainder of the analysis will be in a following series. The second series will provide a deeper analysis of ExxonMobil’s financials.