Exxon Stock Is Not A Buy Exxon earnings are volatile and should continue to be under pressure as the coronavirus depresses demand. XOM stock also swings with crude oil prices.
Rising debt levels and mega capital spending plans in an unfavorable oil price environment led to a steep fall in the stock’s price over the past few years. ExxonMobil stock has fallen more than 40% in 2020.
The 23 analysts offering 12-month price forecasts for Exxon Mobil Corp have a median target of 50.00, with a high estimate of 79.00 and a low estimate of 36.50. The median estimate represents a +11.53% increase from the last price of 44.83.
Exxon Mobil has received a consensus rating of Hold . The company’s average rating score is 2.11, and is based on 8 buy ratings, 15 hold ratings, and 5 sell ratings.
XOM stock may be a solid speculation for the new year, but its long – term prospects are poor. Currently, Exxon shares are down over 39% year-to-date (YTD). Plus, its market capitalization has fallen to $180.5 billion despite a dividend yield of 8.24%.
The price of oil is the main culprit in the demise of Exxon’s share price. Exxon is at a crucial point for the dividend if we do not see an increase in the price of oil. Exxon is undervalued currently, but not by as much as you may think. This is not a value play at current levels.
The bull case for ExxonMobil’s stock in 2021 First, most industry watchers expect oil demand to recover sharply in 2021. That should benefit both Exxon’s oil production business and its refining assets. As a result, it should generate more cash in 2021, which could help take some of the pressure off its stock price.
Oil and gas companies are on the mend after a dreadful 2020. Here are some of the best energy stocks to buy for a bounceback in 2021. But as markets have stabilized into 2020’s late innings, oil has bounced back and now sits at roughly $45 a barrel.
While it is unlikely that Exxon is going to go out of business anytime soon, lingering low energy prices could lead to a dividend cut. Exxon , once a stock appropriate for conservative investors, doesn’t have quite the same risk profile as it did just a few years ago.
By the summer, the oil industry was facing its worst financial crisis in decades. Exxon reported two consecutive quarterly losses, to the tune of $1.7 billion, despite dramatic cuts in spending. The company even announced it would suspend its contributions to its employees’ retirement savings accounts.
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For Exxon Mobil, which has been using debt to pay its dividend , there has been much speculation about how safe the payout is. Exxon Mobil common stock is yielding 10.2%.
|Company/Ticker||Exxon Mobil/ XOM|
|2020 Dividend Action||Maintained|
|Quarterly Dividend Per Share||$0.87|
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