How to Buy Exxon Mobil Stock

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    Exxon Mobil Corporation is a multinational energy company with a rich history spanning over a century. It was founded on November 30, 1999 as a result of a merger between Exxon Corporation and Mobil Corporation, and is headquartered in Irving, Texas.

    More specifically, it is one of the world’s largest publicly traded oil and gas companies, engaged in various aspects of the energy industry. Its stock was listed almost three decades before the merger, on October 19, 1970 and its shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol “XOM”.

    With a market capitalization of about $424 billion, this is obviously a large publicly traded company and many investors are interested in knowing how you can buy the stock. That’s what we intend to show you in this post.

    But take a moment to first go through its features and historical price review below before you follow the guide.

    Exxon Mobil Stock Key Features

    To gain more insight into the investment potential of XOM, it can be useful to assess the company’s business status. Here are some key aspects of the company, as well as its operations to consider before you proceed:

    • XOM is often categorized as a blue-chip stock due to its large market capitalization, established reputation in the energy sector, and financial performance.
    • With roots tracing back to the late 19th century, Exxon Mobil has a long-standing history as a major player in the energy industry. Its longevity and experience may be providing a sense of confidence to shareholders.
    • XOM has a long history of paying dividends to its shareholders. It has traditionally been considered a dividend aristocrat, meaning it has consistently increased its dividend payout over many years.
    • The company also operates on a global scale, with a significant presence in various regions worldwide. This international exposure allows the company to benefit from diverse revenue streams and access to diverse markets.
    • As an oil and gas company, Exxon Mobil provides investors with exposure to the energy sector. The performance of its stock is influenced by factors such as oil prices, geopolitical events, and energy demand.

    Exxon Mobil Stock Prices Historical

    Now, let us consider some of the financial results of the business in the last couple years that could be the fundamental drivers of the fast increase in the price of the stock…

    XOM Stock in 2023

    The stock declined by a modest 4.69%, YTD. Here’s what happened in terms of operational results so far:

    • Jan. 31: The company issued a press release announcing its Q4 results, in which non-GAAP EPS of $3.40 exceeded expectations by $0.12, while revenue reached $95.43 billion, surpassing estimates by $5.22 billion.
    • Apr. 28: Exxon Mobil released its Q1 results report, where it achieved a Non-GAAP EPS of $2.83, surpassing expectations by $0.23. However, revenue for the quarter stood at $86.56 billion, showing a decrease of 4.4% year-over-year and missing estimates by $3.51 billion.

    XOM Stock in 2022

    This was a uniquely good year for the stock as its price climbed by 71.81%. Let us take a look at the results:

    • Feb. 01: Exxon Mobil issued a press release reporting its Q4 results and non-GAAP EPS came in at $2.05, surpassing expectations by $0.11. The company also generated sales of $84.97 billion, reflecting an 82.6% year-over-year increase and beating estimates by $390 million. Additionally, it announced that it anticipated achieving its 2025 emission-reduction targets four years ahead of schedule. 
    • Apr. 29: The company issued a press release announcing its Q1 results that showed its non-GAAP EPS for the quarter at $2.07; apparently, it fell short of expectations by $0.16. However, revenue amounted to $90.5 billion, reflecting a significant year-over-year increase of 53% and surpassing estimates by $6.93 billion. Earnings, excluding identified items, reached $8.8 billion, representing a substantial increase of over $6 billion compared to the first quarter of 2021.
    • Jul. 29: Exxon Mobil released a press release announcing its Q2 results. The company reported a Non-GAAP EPS of $4.14, exceeding expectations by $0.25. More so, sales for the quarter reached $115.68 billion, showing a significant year-over-year increase of 70.8% and surpassing estimates by $4.01 billion. Also, it achieved earnings of $17.9 billion and generated $20 billion in cash flow from operating activities during the second quarter of 2022.
    • Oct. 28: The company issued a press release announcing its Q3 results, through which the company reported a Non-GAAP EPS of $4.45, exceeding expectations by $0.65. Furthermore, revenue for the quarter stood at $112.07 billion, representing a significant year-over-year increase of 51.9% and surpassing estimates by $9.11 billion. Finally, it achieved earnings of $19.7 billion and generated $24.4 billion in cash flow from operating activities during the quarter.

    XOM Stock in 2021

    The stock price in 2021 increased by 48.45%.

    • Feb. 02: Exxon Mobil released its Q4 financial results and reported a Non-GAAP EPS of $0.03, exceeding expectations by $0.01. However, the GAAP EPS came in at -$4.70, falling short of estimates by $3.42. Revenue for the quarter was $46.54 billion, showing a decline of 30.7% year-over-year and missing estimates by $2.22 billion.
    • Apr. 30: As it released its Q1 financial results, the company reported a Non-GAAP EPS of $0.65, surpassing expectations by $0.05. Additionally, the GAAP EPS was $0.64, exceeding estimates by $0.07. Revenue for the quarter amounted to $59.15 billion, reflecting a 5.3% year-over-year increase and beating expectations by $2.61 billion. However, production came in at 3,787 Mboe/d, slightly lower than the consensus estimate of 3,802 Mboe/d.
    • Jul. 30: The company reported its Q2 financial results in which it showed GAAP EPS at $1.10, surpassing expectations by $0.12. Earnings for the quarter rose by $5.8 billion compared to the second quarter of 2020, potentially driven by increased demand for oil and natural gas, as well as outstanding contributions from the chemical and lubricants segments. Moreover, revenue reached $67.74 billion, indicating a substantial year-over-year increase of 107.7% and surpassing estimates by $3.78 billion.
    • Oct. 29: Exxon Mobil released its Q3 financial results through which it reported a Non-GAAP EPS of $1.58, surpassing expectations by $0.06. Additionally, the GAAP EPS was $1.57, exceeding estimates by $0.07. Revenue for the quarter amounted to $73.79 billion, reflecting a significant year-over-year increase of 59.7% and beating expectations by $1.74 billion.

    How To Invest In XOM Shares

    Investing in shares of Exxon Mobil can be a simple process. To get started, you’ll need a brokerage account or a bank account that supports stock trading and provides access to XOM. If you don’t have either, you can easily sign up for a brokerage account online. Established brokers like Charles Schwab, Fidelity, Interactive Brokers, and eToro can be good options for most retail investors.

    If you don’t have a broker yet, we recommend eToro for its user-friendly platform, potentially suitable for many who are new to trading. eToro offers not only stocks but also a wide range of investment options, such as CFDs, forex, commodities, cryptocurrencies, and ETFs.

    Let’s walk you through the process of creating an account on eToro and purchasing XOM shares.

    How to Invest in the XOM Shares Through eToro

    The process of buying stocks generally follows a similar pattern across different brokerage platforms. Whether you choose eToro or another option, the following steps will give you a general understanding of the actions needed to go from creating an account to adding your desired shares to your investment portfolio.

    Step 1: Open an Account

    To begin, visit the eToro website and find the “Sign-up” button. Clicking on it will take you to the registration page, where you’ll be prompted to provide personal information like your name, email address, and a chosen password. Alternatively, you can create a profile by linking your existing Facebook or Google accounts.

    Open an Account

    Step 2: Upload ID

    Next, you’ll need to undergo an identity verification process. This involves submitting documents for proof of identity (POI) and proof of address (POA). Acceptable POI documents include passports, ID cards, and driver’s licenses. The POA document should display your full name and address, with a recent issue date, preferably within the last three months.

    Proof of identity

    Step 3: Make a Deposit

    After successfully completing the account verification process, the next step is to fund your eToro account. After you sign into the eToro platform and land on the main menu, look for the “Deposit Funds” button. Clicking on it will allow you to enter the desired investment amount for XOM, select the currency, and choose the payment method you prefer.

    Make a Deposit

    Step 4: Search for XOM

    Then, to locate Exxon Mobil’s stock on the eToro platform, simply enter “XOM” in the search tab. If later you’re unsure about the ticker symbol for other stocks you’re interested in, you can input the initial letters of the company’s name, and the platform will display relevant results. This feature will allow you to navigate and explore different stocks and ETFs more easily.

    Search for XOM

    Step 5: Invest in XOM

    After selecting XOM on the eToro platform, click on the “Invest” button located in the upper right corner. This will allow you to choose the investment amount or the number of shares you want to purchase. Once you’ve completed this step, you will soon see your newly acquired XOM shares in your portfolio.

    Buy XOM

    Summary

    All in all, investing in Exxon Mobil can be simple if someone is familiar with what is required. After reading the above guide, we hope that you now know what the process looks like if you decide to open an eToro account and what it more or less looks like if you go with any other broker.

    But we first wanted to show you some financial results the company has released in the past before you make any investment decision. As you were able to see, there was some significant growth in the price of the stock in the last couple of years. It’s a reasonable assumption that fundamentals could have had a role to play in that when looking at the big picture; and that’s why the financial performance might be relevant to know.

    FAQs

    Should investors consider buying, holding, or selling Exxon Mobil stock at its current market conditions?

    That only you can answer after you do some due diligence on the fundamentals. Things to assess are the capital structure, profitability, market growth prospects, valuation compared to peers, and risks specific to investing in the particular stock as well as when being exposed to the related industry.

    Is it possible to directly purchase Exxon Mobil stock without using a brokerage account?

    No, you will need to open a brokerage account even if that account is provided by your bank.

    How does the valuation of XOM compare to its peers?

    The TTM non-GAAP P/E ratio for XOM stands at 7.09, exceeding the sector median of 6.37. This suggests that Exxon Mobil’s stock may be undervalued relative to its industry peers based on earnings. Additionally, the FWD Price/Sales ratio for XOM is 1.10, slightly lower than the sector median of 1.27. However, the TTM Price/Book ratio for XOM is 2.14, higher than the sector median of 1.51, suggesting that the stock is more expensive in relation to the value of its assets.

    Does XOM pay a dividend?

    Yes, the company has been paying a dividend since 1989.

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