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.
XOM saw its Momentum Indicator move below the 0 level on May 30, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned negative. In of the 93 cases, the stock moved further down in the following days. The odds of a decline are at .
XOM moved below its 50-day moving average on May 02, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for XOM crossed bearishly below the 50-day moving average on May 10, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where XOM's RSI Indicator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that 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 60 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 Moving Average Convergence Divergence (MACD) for XOM just turned positive on May 24, 2023. Looking at past instances where XOM's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XOM advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
XOM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 260 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 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 83, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 fair valued 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 (2.117) is very high in comparison to the industry average of (1.038). P/E Ratio (7.042) is within average values for comparable stocks, (15.029). Projected Growth (PEG Ratio) (1.768) is also within normal values, averaging (4.101). Dividend Yield (0.035) settles around the average of (0.103) among similar stocks. P/S Ratio (1.116) is also within normal values, averaging (0.581).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. XOM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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
A.I.dvisor indicates that over the last year, XOM has been closely correlated with CVX. These tickers have moved in lockstep 90% of the time. This A.I.-generated data suggests there is a high statistical probability that if XOM jumps, then CVX could also see price increases.