April 26, 2016

VALUATION WATCH: Overvalued stocks now make up 44.57% of our stocks assigned a valuation and 14.32% of those equities are calculated to be overvalued by 20% or more. Six sectors are calculated to be overvalued.

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Stripped

Oil Giant Loses AAA Rating

Exxon Mobil (XOM) Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Exxon Mobil is engaged in exploration for, and mining and sale of coal, copper and other minerals.

We noted a few weeks ago that the oil industry seemed to have come through the recent "unpleasantness" and was enjoying a bit of a resurgence. Higher prices for crude however, do not mean that all the bad news is done. Today the S&P ratings agency stripped Exxon-Mobil of its AAA credit rating.

According to the Wall Street Journal, the company had held the rating since 1949. The company was of only three (including Microsoft and Johnson and Johnson) currently holding the highest rating for credit worthiness. However, according to S&P, their willingness to continue spending and dividend payments as usual despite the carnage in the crude markets has done real damage to their balance sheet. Today's action was forewarned back in February when S&P reduced the ratings of a number of oil and gas companies.

ValuEngine continues its HOLD recommendation on EXXON MOBIL CRP for 2016-04-25. Based on the information we have gathered and our resulting research, we feel that EXXON MOBIL CRP has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Earnings Growth Rate.


You can download a free copy of detailed report on Exxon Mobil from the link below.

ValuEngine Forecast
	Target Price*	Expected Return
1-Month	87.35	0.02%
3-Month	88.68	1.55%
6-Month	90.65	3.81%
1-Year	87.56	0.26%
2-Year	105.23	20.50%
3-Year	113.15	29.56%

Valuation & Rankings
Valuation	23.03% overvalued	Valuation Rank(?)	14
1-M Forecast Return	0.02%	1-M Forecast Return Rank	52
12-M Return	0.41%	Momentum Rank(?)	70
Sharpe Ratio	-0.01	Sharpe Ratio Rank(?)	56
5-Y Avg Annual Return	-0.13%	5-Y Avg Annual Rtn Rank	56
Volatility	15.04%	Volatility Rank(?)	85
Expected EPS Growth	5.41%	EPS Growth Rank(?)	33
Market Cap (billions)	369.80	Size Rank	100
Trailing P/E Ratio	29.50	Trailing P/E Rank(?)	44
Forward P/E Ratio	27.99	Forward P/E Ratio Rank	15
PEG Ratio	5.46	PEG Ratio Rank	6
Price/Sales	1.38	Price/Sales Rank(?)	56
Market/Book	2.09	Market/Book Rank(?)	48
Beta	0.86	Beta Rank	52
Alpha	-0.01	Alpha Rank	59

DOWNLOAD A FREE SAMPLE OF OUR EXXON MOBIL (XOM) REPORT BY CLICKING HERE

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