Saudi state energy giant, Aramco, plans to foray into international oil and gas exploration in future, which may put the company into competition with Exxon Mobil (XOM) and Royal Dutch Shell (RDS). Global players are already shoring up their gas operations as the world's appetite for the fossil fuel grows, particularly in Asia.
Historical data reveals that Aramco has produced Saudi Arabia’s vast, low-cost reserves. But now the Saudi Energy Minister has expressed interest in looking overseas for oil and natural gas opportunities. Its top agenda is to build a global natural gas business.
Other considerations include investments in LNG projects in the Russian Arctic and the U.S., as well as opportunities in Australia, which recently topped Qatar as the world's top exporter of LNG.
Aramco has already made investments in overseas refineries and petrochemicals plants. Case-in-point: Aramco’s Motiva facility in Port Arthur, Texas, is the largest refinery in the United States. Closer to home, Aramco is finalizing a deal with Saudi petrochemicals company Sabic that will witness a purchase of 70% stake from the kingdom’s sovereign wealth fund. Expected to raise $70 billion for the Public Investment Fund, the deal will partially underwrite Crown Prince Mohammed bin Salman's efforts to diversify the Saudi economy. Currently, oil accounts for nearly 90% of Saudi revenue.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where XOM advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where XOM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for XOM moved above the 200-day moving average on March 27, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 266 cases where XOM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for XOM moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on XOM as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for XOM turned negative on April 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XOM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
XOM broke above its upper Bollinger Band on April 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. XOM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: XOM's P/B Ratio (2.267) is slightly higher than the industry average of (1.218). P/E Ratio (13.160) is within average values for comparable stocks, (24.146). Projected Growth (PEG Ratio) (6.848) is also within normal values, averaging (4.841). Dividend Yield (0.032) settles around the average of (0.107) among similar stocks. P/S Ratio (1.416) is also within normal values, averaging (0.979).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributer of crude oil, natural gas and petroleum products
Industry IntegratedOil