Friday, January 2, 2015

Exxon Mobil (XOM) Stock Erases Gains in After-Hours Trading Today

NEW YORK (TheStreet) -- Exxon Mobil shares are down 0.31% to $92.54 in after-hours trading on Friday, erasing most of the gains the stock experienced as it closed day trading up 0.41% to $92.83. The retreat may be the result of falling oil prices as industry standard Brent crude closed trading down 91 cents to $56.41. Today's drop in oil prices comes as Iraq and Russia increased their supplies amid signs of manufacturing weakness in Europe and China, according to Bloomberg. U.S. oil prices in 2014 fell 46% in trading, the biggest annual drop since 2009 and the second largest decline since 1983. Meanwhile, European prices fell 48% last year, its largest decline since the 51% drop prices experienced in 2008. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate EXXON MOBIL CORP (XOM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: EXXON MOBIL CORP has improved earnings per share by 5.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXXON MOBIL CORP reported lower earnings of $7.37 versus $9.70 in the prior year. This year, the market expects an improvement in earnings ($7.50 versus $7.37). The net income growth from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 2.5% when compared to the same quarter one year prior, going from $7,870.00 million to $8,070.00 million. XOM's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that XOM's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs. Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: XOM Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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