The easiest way to invest in stocks is to buy an exchange traded fund. But if you pick the right individual stocks, you can make more than that. in short, Exxon Mobil Corporation (NYSE:XOM) shares are 80% higher than they were a year ago, far better than the roughly 23% market decline (excluding dividends) over the same period. If it can maintain that outperformance over the long term, investors will do very well!Moreover, in retrospect, the stock is 57% higher than it was three years ago.
With that in mind, it’s worth checking to see if the company’s underlying fundamentals have been the driving force behind its long-term performance, or if there are some discrepancies.
See ExxonMobil’s Latest Analysis
Markets are powerful pricing mechanisms, but stock prices reflect investor sentiment, not just underlying performance. By comparing earnings per share (EPS) and stock price over time, you can get a sense of how investor attitudes toward companies have changed over time.
Last year, ExxonMobil grew its earnings per share and went from a loss to a profit.
If a company is on the brink of profitability, it’s worth looking at other metrics to more accurately measure growth (and thus understand stock price movements).
We believe the 61% increase in revenue could be of interest to investors. Many companies go through a stage where profits have to be withheld in order to drive business development, and sometimes that is for the best.
The chart below shows how revenue and returns have changed over time (click the image to see the exact values).
ExxonMobil is well known to investors and many smart analysts are trying to predict future earnings levels. So it makes a lot of sense to check what analysts think ExxonMobil’s future earnings are (free analyst consensus estimates).
When looking at return on investment, it’s important to consider the following differences: Total shareholder return (TSR) and stock price returnTSR incorporates the value of spin-off or discounted capital raising along with dividends, based on the assumption that dividends are reinvested. Arguably, the TSR is a more comprehensive representation of the returns generated by equities. As it happens, ExxonMobil’s TSR over the past year was 87%, beating the stock return mentioned above. This is primarily a result of dividend payments!
another point of view
ExxonMobil shareholders are pleased to report an 87% total shareholder return in one year. Including dividends, of course. This is better than the annual return of 11% over the past five years, and indicates that the company’s performance has improved in recent years. In a best-case scenario, this could signal real business momentum, suggesting that now may be the perfect time to dig deeper. It’s always interesting to keep track. However, many other factors must be considered to better understand Exxon Mobil. Like risk, for example.All companies have them and we found Two ExxonMobil Warning Signs (one of which can be serious!) you need to know.
of course, You can find great investments by looking elsewhere. Let’s take a look at this freedom A list of companies whose revenue is expected to increase.
Please note that the market returns quoted in this article reflect market-weighted average returns for stocks currently traded on US exchanges.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …
Participate in Paid User Research Sessions
you $30 USD Amazon Gift Card An hour of your time while helping build better investment tools for individual investors like you.SIGN UP HERE