Exxon Mobil Shares Down in August
Exxon Mobil Corp. (NYSE:XOM) shares have fallen $3.99 or 6.35% since August 2nd, and as the darling among the gas/oil companies its stock could be headed for a comeback.
Exxon Mobil Corp (XOM) shares have traded between $55.94 and $76.54 over the past 12 months. Exxon shares are now trading with a P/E Ratio of 11.4 and EPS of 5.18. Thanks to the recent decline in all major equities Exxon Mobil shares are only 5.01% away from its 52-week low. That means Exxon's dividend yield stands at 2.99%, kicking out 44 cents for every share on a quarterly basis.
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Its just not Exxon that has dropped like a rock this month, since August 9th BP Plc (BP) stock is down 6%, Chevron (CVX) has declined 4.67% and ConocoPhillips (COP) has dropped 5.34%.
Crude oil prices have sunk nearly 8% in the past two weeks as the U.S. economic newsflow has generally underperformed. At one point on Thursday, oil prices fell to a six-week low below $74 a barrel after figures showed an unexpected rise increase in weekly U.S. jobless claims to half a million.
Then there's gas prices, the average retail price for a gallon of unleaded regular gasoline was $2.724 a gallon Friday, according to AAA, Wright Express and Oil Price Information Service. Gasoline has dropped about 4.6 cents in the past week but is still 10 cents more than it was a year ago.
Over the next month, motorists could see prices fall 10 cents to 15 cents a gallon unless there's a sudden increase in oil prices and in investors' confidence in the global economy.
Let all this doom and gloom bring the big oil stocks to their knees, and when they all hit bottom, start buying like no tomorrow. There's no question Exxon Mobil, one of the world's largest oil companies is worth buying should it hit a new 52-week low. Last month Exxon Mobil, reported a Q2 2010 profit of $7.56 billion, or $1.60 a share, up from $3.95 billion, or 81 cents, a year earlier. Revenue rose 24% to $92.48 billion.
Discliamer: No positions in any of the securities mentioned in this publication.