Shares of Exxon Mobil (XOM) have gained 8.2% during the past three months, not only besting the likes of ConocoPhillips (COP) and Chevron (CVX), which has dropped 11% and 3,2% respectively, but the S&P 500′s 1.7% gain as well.
Bloomberg Barclays’ Paul Cheng and Anthony Kit don’t think Exxon Mobil’s outperformance is destined to last. They write:
Since late October 2013, [Exxon Mobil] has massively outperformed…which we attribute to three main factors: the Buffett effect, the stock's safe haven status during periods of macroeconomic concern, and the expectation that production has finally bottomed with 3Q13 marking the inflection point towards higher growth. However, due to the recently expired ADCO license in Abu Dhabi as well as the Dutch government's decision last week to cut Groningen gas production due to tremor concerns, we think 2014 will result in yet another year of negative production growth for [Exxon Mobil].
Top Promising Companies To Own In Right Now
As a result, Cheng and Kit cut their Exxon Mobil earnings forecast for 2014 to $7.20 from $7.40. Still, they expect Exxon Mobil to beat 4th-quarter forecasts of $1.92 by four cents.
Shares of Exxon Mobil have gained 0.3% to $95.17 at 3:44 p.m., while ConocoPhillips has dropped 0.8% to $66.04 and Chevron has risen 0.4% to $116.74.
No comments:
Post a Comment