Exxon Mobil (XOM – Analyst Report) missed the Zacks Consensus Estimate last quarter, but the slumping price of oil has made analysts rethink their estimates for the coming quarter. Today the stocks is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.
Earnings estimate revisions, which is the primary component of the Zacks Rank, have fallen over the course of the year. The Zacks Consensus Estimate was at $4.27 at the start of this year, but is now $4.01. That is a good sized drop in the 2015 Zacks Consensus Estimate.
The thing that seems to be keeping the stock with the lowest Zacks Rank is that estimates for 2016 are falling even more. That number started the year at $5.40 and is now down to $4.23.
Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represent analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving lower.
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Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Stocks Under $10, an investor service , where he recommends the stocks in the portfolio.