February 27, 2017
See how XOM's price mostly follows its earnings

Exxon Mobil: Does a prolonged earnings slide mean anything?

Looking at XOM

Companies’ stock prices generally go up when earnings do.  So, when faced with a stalwart household name whose earnings have been steadily going down for two years, what should we do?   Consider Exxon Mobil.  Since it has some history (Rockerfeller founded Standard Oil in 1870), we can take the long view.  Here I present 20 years of price history.

Figure 1 20 years of XOM price history


Since 2007 (halfway across the chart) XOM has gone up about 5% annually, while the S&P 500 went up almost 10%.  What’s more, XOM had the same volatility as the general market .  

September 6, 2016

Avoid stocks like XOM