GET DAILY SIGNALSIs Exxon’s (XOM, $74.85) U.S. onshore yield going the wrong way?
Integrated oil giant ExxonMobil’s recent production history indicated a steady decrease in production over the last three years. In 2016, Exxon’s average daily oil equivalent production fell roughly by 1% on a y-o-y basis, while in 2017 it dropped roughly 1.7%. In 2018, it dropped another 3.8%. Overall, production fell roughly 6.4% in three years and for an oil-producing company, this isn’t a good trend.
A closer look shows the issue may not be alarming. Even after a rough 2018 in terms of average annual production, the numbers began to bounce back in the second half of that year with the trend being carried over to the first half of 2019, pushing y-o-y production up by 5%.
So, what’s the driver behind this improvement?
The answer: Exxon’s efforts in the onshore U.S. market, where the Permian Basin has finally begun to produce strong results. In 2018, the company initially expected to produce 600,000 oil equivalent barrels per day by 2025. But by the outset of 2019, the company revised its expectations and it now estimates to yield one million barrels per day by 2024. If accomplished, this will account for a massive 66% increase. So far, the company has produced only less than half the target in 2019. But by the time it reaches the target of one million barrels per day, it will only have drilled about half of its current inventory. This would mean that production could go higher than 100% in the next four years.
However, the exciting bit is that even if oil trades at only $35 per barrel, the company still expects to garner a strong performance considering its production scale.
XOM's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for XOM turned positive on October 06, 2026. Looking at past instances where XOM's MACD turned positive, the stock continued to rise in 36 of 49 cases over the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on XOM as a result. In 64 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
Following a +2.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where XOM advanced for three days, in 232 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 192 of 312 cases where XOM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 21 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 44%.
XOM broke above its upper Bollinger Band on October 30, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 26, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 8 (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 PE Growth Rating for this company is 11 (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 Seasonality Score of 50 (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 62 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally 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 86 (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 (2.968) is slightly higher than the industry average of (1.687). XOM has a moderately high P/E Ratio (24.099) as compared to the industry average of (11.369). Projected Growth (PEG Ratio) (1.392) is also within normal values, averaging (1.088). Dividend Yield (0.022) settles around the average of (0.047) among similar stocks. P/S Ratio (1.911) is also within normal values, averaging (3.764).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a distributer of crude oil, natural gas and petroleum products
Industry IntegratedOil
Advertisement