24 Jan

Analysts’ Views on ExxonMobil, Pre-4Q17 Results

WRITTEN BY Maitali Ramkumar

Analysts’ ratings for ExxonMobil

In this series, we’ve examined ExxonMobil’s (XOM) 4Q17 estimates, segment-wise earnings outlook, and stock performance. We also reviewed ExxonMobil’s stock forecast range for the 14 days leading up to its earnings release on February 2, 2018. In this part, we’ll examine analysts’ ratings for ExxonMobil. Of the 25 analysts covering ExxonMobil, eight (32%) have recommended “buy” or “strong buy,” 12 (48%) have recommended “hold,” and five (20%) have recommended “sell” or “strong sell.”

Analysts’ Views on ExxonMobil, Pre-4Q17 Results

Why analysts have mixed opinions on ExxonMobil

ExxonMobil’s (XOM) expansion activities, spread across its business segments, are making its earnings model more integrated, shielding it partially from oil price volatility. Its inorganic and organic growth strategy in its upstream segment will likely grow its upstream portfolio. Plus, ExxonMobil’s expansion and modernization activities in its downstream (refining and chemicals) segment will likely raise its downstream earnings. For more on ExxonMobil’s capex and growth activities, read How Prepared Is ExxonMobil for 2018?

ExxonMobil may have received mostly “hold” or “sell” ratings because of its valuation placing highly within its peer group. Market participants have probably already factored in XOM’s expected growth and relatively sound financials.

Analysts’ ratings for peers

Peers Total (TOT), Statoil (STO), and YPF (YPF) have been rated “buy” by 17%, 20%, and 86% of analysts, respectively, and Chevron (CVX), BP (BP), and Royal Dutch Shell (RDS.A) have been rated “buy” by 58%, 46%, and 91% of analysts.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.