Exxon Mobil: Risk/Reward Isn’t Appealing With Profit Slump

Summary:

  • Exxon Mobil Corporation missed analyst estimates for Q3 ’23 after a major deal announcement, confirming a bearish outlook.
  • The acquisition of Pioneer Natural Resources raises concerns about focusing on non-organic growth and shifts focus away from the energy transition.
  • Exxon Mobil stock is expensive at 12x EPS run rate, with the risk of lower oil prices apparently not factored into the stock price.

risk and reward balance concept

marekuliasz

Investors probably shouldn’t be surprised that Exxon Mobil Corporation (NYSE:XOM) missed analyst estimates in Q3 for the first time after announcing a major acquisition. The energy giant has now seen energy prices return to normal levels and


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