Exxon (XOM) Stock Forecast: Better to Buy Now?

Exxon Mobil Corporation Last Price

metric value tendency
Share volume 24.2 M lower
Average share volume 24.5 m n/a
Forward PE (1 year) 9.28 am n/a
Highlights of Exxon Mobil’s Q1 2022:

• On April 29, Exxon Mobil reported first-quarter 2022 earnings.
• Total earnings: $5.5 billion which compared to Q4 2021 earnings ($8.8 billion) is significant
• They increased their buyback to $30 billion through 2023.

• An unfavorable item mentioned in earnings is a $3.4 billion net of tax charges after the release of XOM
from Russia Sakhalin-1.
• Capital and exploration expenses: $4.9 billion.

XOM Stock Forecast: Performance Chart

Stock name 5 days 1 Month 6 Months 1 Year
XOM Actions +1.3% -7.2% +7.3% +50.7%

Exxon and Massachusetts Lawsuit

Exxon was sued by Attorney General Maura Healey in 2019 on suspicion that they are not honest about the impact of their fossil fuel products on the climate for their investors and the general public. The company has denied such allegations and has remained cautious that they are transparent about their consequences on climate change.

The Massachusetts high court rejected the company’s request to dismiss the lawsuit.

XOM Stock Forecast: Support and Resistance

source support resistance recommendation $87 (S3) $88 (R1) buy
Bar chart $85 (S3) $89 (R1) buy

Russia and Ukraine World War has been in turmoil lately due to Russia’s invasion of Ukraine. It has affected economies to a large extent, and one in two industries will be affected by this war for a longer period of time than initially planned. It has also helped keep crude oil such as Brent crude and WTI prices very volatile in the last month since mid-February 2022. Investors are looking for stocks to overcome this volatility in the price of crude oil. We’ll explore exxon Mobil’s option in this article

XOM Stock Forecast: CrowdWisdom360-Insights

  • Exxon Mobil has decided to increase natural gas production from the Kipper field in the Gippsland Basin in southeastern Australia. The company made this move to reduce the shortcomings of the domestic gas supply chain.
  • In 2023, the Kipper field of the Gippsland Basin is expected to generate 30 petajoules (PJ). Over the next five years, ExxonMobil will invest $291 million to produce 200 PJ of natural gas.
  • Exxon Mobil’s shares have risen sharply in recent weeks due to Russia’s war with Ukraine and the resulting rise in energy prices. Oil companies are gradually increasing production in response to rising demand and prices.
  • ExxonMobil has decided to keep its dividend, growing the company’s debt even more. Despite a challenging market, Exxon Mobil’s commitment to its dividend is what draws income investors to the stock. Recently, Exxon Mobil announced a $10 billion share repurchase program.
  • Exxon Mobil Corp (XOM) has risen 45.41% in the past year and Wall Street analysts have given it a Buy rating. The jump in oil prices after the invasion would be a key point to keep an eye on.
  • Oil prices have risen amid the current Russia-Ukraine tension. With Russia and Ukraine unable to come to a conclusion, there is a worrying risk of oil supply on the market.
  • XOM is included in nasdaq’s most active pre-market stocks for May 25.
  • So, the recommendation is to buy this stock in the short term.

XOM Stock Forecast: Bullish Case

US and Western sanctions on Russian imports of oil and natural gas – To begin with, Russia exports 5 million barrels of oil a day. He did the same for many years. But Russia’s recent invasion of Ukraine has changed it completely. The president of the United States in the first State of the Union address imposed sanctions on Russia, banks and various other things, but spared oil and gas imports.

But last week, he announced new sanctions, including oil and gas imports from Russia. Since this news broke, Brent crude has reached new heights by touching $130 a barrel. This has led to an increase in the revenue and profitability of oil companies, and Exxon Mobil will certainly benefit from this move in the near term. In addition to it, the European Union is also planning to cut Russian imports by the end of the year. Therefore, it could signal that crude oil prices remain higher for a longer period of time and this is an advantage for all oil industries.

XOM Equity Forecast: Better-than-Expected Results for Q4 2021-22

Exxon Mobil is the market leader in its industry and always produces results above par. But the trend of results is changing positively in the period of the last two years. This is clearly visible in the recently announced Q4 2021-22 results. Earnings per share stood at $2.05 versus the expectation of $1.94 per share. This increased significantly from $0.65 per share in the first quarter of 2021-22. In addition, net sales were $81.93 billion and net income was $8.87 billion.

In terms of revenue, it increased from $46 billion y/y, and most importantly, net income went from negative $20.07 billion to positive $8.87 billion. This performance is likely to continue in the future, at least for the short term, as crude oil prices are not expected to fall below $100 a barrel anytime soon.

XOM Equity Forecast: Outperform against S&P 500 and Nasdaq

Exxon Mobil outperformed the S&P 500 and Nasdaq index over various time frames, including one month, six months and one year. Over the past year, the S&P 500 has only yielded 8.23% (as of 11.03.2022), while XOM stock has risen 39.23%. Over the past six months, the Nasdaq index has yielded -13.33%, while at the same duration, XOM stock has given a fantastic positive return of 54.16%. The same applies to the three-month period of time or the benefits over the period of time or the benefits over the year to date. It shows that, at the time of global market volatility, Exxon Mobil is there to guide us.

Technical analysis shows that there is more to come- Many people believe that Exxon Mobil has risen too fast and furious and could come down with that speed, or at best it is time for consolidation and may not give the same return in the future as in the last six months. But technical analysis shows something different. If it is true that it has given good returns recently, but it is also true that it is trading mainly moving averages, whether they are simple or exponential for all times.

It is trading above the moving averages of 10, 20, 30, 50, 100 and 200 days, which is definitely a bullish sign for any stock. In addition, the MOMENTUM INDICATOR MACD (12.26) is also signaling towards the buy signal. In addition, the average directional index (14) is neutral and signals that the current momentum may not change anytime soon. Overall, it is a purchase from the point of view of technical analysis.

XOM Stock Forecasts: Bear Case

Too much dependence on oil and gas rates- Each coin is double-sided. For Exxon Mobil, the dependence on crude oil prices is similar. While we are seeing the positive side recently in the last six months, but it has a negative side, which was visible in the period March-November 2020. Crude oil prices hit an all-time low, responding to lower demands and with that XOM stock prices fell from $68.56 on 17th January 2020 to $32.74 on 20th March 2020.

It crashed by more than 50% in just one month. In addition, it remained there at least until October 2020 and it was only after that that it began to rise along with crude oil prices. It can well be established that it has a direct relationship with the price of crude oil, which does not have control of society, and in times of difficulty in crude oil prices, it is seen that the fundamentals of society have not saved it.

The world is moving towards renewable energy sources and electric cars- While we talk about big oil companies like British Petroleum and Exxon Mobil and their great future future, it is also too absorbed by the fact that the world is slowly and steadily moving towards renewable resources and more specifically towards electric vehicles. This move was taken specifically to reduce the volatility of crude oil prices that we are seeing now.

This is likely to reduce demand for fossil fuels in the future, over the next decade, and thereby reduce oil companies’ revenues. The US president announced that at least 50% of the vehicles should be EVs by 2030 and approved a mammoth bill of $7.5 billion for the same. All of these factors are sure to impact Exxon Mobil share price returns.

XOM Stock Forecast: XOM Buy or Sell?

Exxon Mobil stock is intended to guide us through the volatility phase. It is bound to be held in times of uncertain global scenarios that will have a positive impact on crude oil prices and keep them higher. Apart from that, the company’s fundamentals are very good and it is improving its earnings and cash flow over the past two years after Covid. Operating cash flow went from $14.67 billion in 2020 to $48 billion in 2021.

So, does XOM buy or sell? There is so much to appreciate about Exxon Mobil as a company, but its reliance on crude oil prices cannot be hidden, and in the generation of electric vehicles, fossil fuels will surely find it difficult to maintain their prices.

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