Will Exxon Mobil Stock Trade Higher Post Q2?

Exxon Mobil (NYSE: XOM), a leading explorer, producer, transporter, and seller of crude oil and natural gas, and North America’s largest energy company by market cap, is scheduled to announce its fiscal second-quarter results on Friday, July 28. We expect Exxon Mobil stock to likely trade higher with revenue and earnings both beating market expectations marginally. Oil prices have been surprisingly lower than expected at the beginning of the year. However, oil prices have jumped over the last fortnight – boosted by a falling U.S. dollar and supply cuts by the world’s biggest oil exporters (Saudi Arabia and Russia). Having said that, the short-term trend for oil will depend upon the level of market angst. But, we believe that the energy giant’s fundamentals remain strong, which will likely pave the way for longer-term gains. The company has also been able to improve its production and lower the costs since late 2022, which is a big win. Not to forget its very low debt-to-equity ratio (0.2x) which makes its balance sheet strong to withstand any further energy downturn. Also, we believe that rebounding demand and tight supplies can lead to higher oil prices by the end of the year.

Our forecast indicates that Exxon Mobil’s valuation is around $115 per share, which is 9% higher than the current market price. Look at our interactive dashboard analysis on Exxon Mobil Earnings Preview: What To Expect in Q2? for more details.