ExxonMobil vs. Chevron: What's the Better Buy?

Earnings season continues to move rapidly, with a notably rich reporting docket this week. A few big-tech names and representatives from many sectors have delivered their quarterly prints, with next week just as exciting.Among the bunch this week are two energy titans, Exxon Mobil XOM and Chevron CVX. There has been a big performance disparity between the two in 2024, with XOM shares widely outperforming.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Energy companies are expected to face a harsh reporting period in general, with earnings for the broader Zacks Oil & Energy sector expected to be down -26.6% from the same period last year on -2.3% lower revenues.Let’s take a closer look at expectations for XOM and CVX.ExxonMobil Production is Key Earnings revisions for the upcoming release have been quite bearish, with the $1.95 Zacks Consensus EPS estimate down 12% since just the beginning of August. The value reflects a 14% pullback from the same period last year, reflecting a notable profitability crunch.Top line revisions have been positive, however, with XOM expected to see 3% sales growth year-over-year.Image Source: Zacks Investment ResearchIt’s critical to note here that the company’s merger with Pioneer earlier in the year has really strengthened the company’s upstream portfolio, which was responsible for $500 million in earnings throughout its latest period (2024 Q2). It’s added significant production capabilities for the company, undoubtedly what investors are seeking.We’ll likely hear much more concerning the added benefits from the merger, with production volumes again expected to be a focal point. Fluctuating commodity prices have made it a tough environment for these companies overall, a development that follows record earnings throughout 2022 thanks to high oil prices.And of course, investors will also be zeroed in on the company’s cash flows, which have allowed it to sport a shareholder-friendly nature for years. Impressively, XOM paid out $4.3 billion in dividends to shareholders throughout its latest period.Below is a chart illustrating the company’s dividends paid on an annual basis. Please note that the final value is currently being calculated on a trailing twelve-month basis, as its current fiscal year is still ongoing.Image Source: Zacks Investment ResearchChevron Faces Hurdles Earnings expectations for CVX’s release have moved similarly, with the $2.47 Zacks Consensus EPS estimate down 21% since the beginning of August and suggesting a 19% decline year-over-year.Image Source: Zacks Investment ResearchAnd in contrast to XOM, the company’s sales expectations have actually drifted quite lower as well, with the current $49.8 billion expected down more than 5% over the same time period and suggesting an 8% pullback.Image Source: Zacks Investment ResearchThe company’s latest set of quarterly results didn’t impress investors despite posting record Permian production and an 11% climb in global production overall. Its attempted merger with Hess has been a thorn in the side due to pushback from competitors, though it’s critical to note that the merger did recently clear FTC antitrust review.The merger still has some hurdles to clear, but the overall goal for Chevron remains to bulk up its production, similar to what we’ve seen with XOM. Still, the stock’s outlook has taken a considerable hit across the board, landing it into an unfavorable Zacks Rank #5 (Strong Sell).Putting Everything TogetherTwo energy heavyweights – ExxonMobil XOM and Chevron CVX – are on the reporting docket this week, continuing a hectic week of earnings overall.The setup for XOM appears to be much more attractive heading into the release given its amplified earnings power stemming from the Pioneer acquisition, with the company expected to post positive sales growth year-over-year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks