Zacks Investment Ideas feature highlights: ExxonMobil and Chevron

For Immediate ReleaseChicago, IL – November 4, 2024 – Today, Zacks Investment Ideas feature highlights ExxonMobil XOM and Chevron CVX.Exxon vs. Chevron: Which Is 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, ExxonMobil and Chevron. 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 KeyEarnings 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.It'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.Chevron Faces HurdlesEarnings 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.And 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.The 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 TogetherThese two energy heavyweights 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.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. 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