24 Jan

How ExxonMobil Stock Has Performed Lately

WRITTEN BY Maitali Ramkumar

ExxonMobil’s stock returns

Previously, we examined ExxonMobil’s (XOM) segment-wise outlook for 4Q17. In this part, we’ll review ExxonMobil’s stock performance before its 4Q17 results. Since October 2, 2017, ExxonMobil stock has recovered, switching from negative to positive returns.

How ExxonMobil Stock Has Performed Lately

WTI price trends

Normally, integrated energy stocks correlate positively with crude oil prices. Since October 2, WTI (West Texas Intermediate) prices have risen 25%, likely due to production cuts and strong demand. US oil inventories have fallen 33% from their peak, and high production cut compliance is further denting the global oil supply. For more oil price analysis, read What Could Reverse the Trend in Crude Oil Prices in 2018?

ExxonMobil stock returns

WTI’s price rise since October 2 has likely supported ExxonMobil stock. Also, as we discussed in the first part of this series, XOM posted better-than-expected 3Q17 earnings in 4Q17. Furthermore, tax reform could result in savings for ExxonMobil, which could affect its financial position. A tax reform bill signed in December 2017 cut the corporate tax rate to 21%.

However, ExxonMobil stock, with a 6.8% return, has underperformed the SPDR S&P 500 ETF (SPY). SPY has risen 11.1% since October 2, and Total (TOT), Statoil (STO), and Petrobras (PBR) have risen 8.5%, 15.7%, and 20.8%, respectively. In the next part, we’ll look at how ExxonMobil’s moving averages are trending.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.