The Zacks Analyst Blog Highlights ExxonMobil, Chevron and BP

For Immediate Release

Chicago, IL – August 5, 2026 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil Holdings Corp. XOM, Chevron Corp. CVX and BP plc BP

Here are highlights from Wednesday’s Analyst Blog:

Should You Buy ExxonMobil Stock Despite Its Q2 Earnings Miss?

Last Friday, ExxonMobil Holdings Corp. announced second-quarter 2026 earnings that missed expectations owing to the conflicts in the Middle East that hurt oil and gas production. However, non-Middle East upstream production achieved its strongest levels in more than two decades.

Thus, it is clear that despite the earnings shortfall, ExxonMobil’s core businesses continue to show considerable strength. Also, considering the solid crude pricing environment, the integrated energy giant’s overall business outlook remains solid. Before assessing whether the stock is worth buying, let's first take a closer look at its second-quarter results.

XOM’s Q2 Earnings Snapshot

ExxonMobil reported earnings per share of $3.52 (excluding identified items), which missed the Zacks Consensus Estimate of $3.68. The bottom line, however, increased from the year-ago level of $1.64.

Total quarterly revenues of $116.01 billion beat the Zacks Consensus Estimate of $95.8 billion. The top line improved from the year-ago figure of $81.51 billion.

Chevron Corp.  and BP plc are two other prominent integrated energy companies. Both CVX and BP have already posted results.

High Oil Price to Aid Upstream Operations of XOM

West Texas Intermediate (“WTI”) crude is trading at more than the $75-per-barrel mark. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $76.26 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting ExxonMobil's exploration and production activities, which derive the majority of its earnings.

The company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing new drilling techniques and artificial intelligence to boost and optimize production volumes at lower cost structures.

In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Robust production from both assets has been aiding its top and bottom lines. In both resources, the breakeven costs are low.

XOM’s Solid Balance & Dividend Commitment

Investors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is significantly lower than the industry’s composite stocks.

Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.

What Should Investors Do Now?

The positive developments are getting reflected in the price chart. In the past year, XOM has jumped 44.6%, outpacing the industry’s 41.1% growth. BP and CVX, two other integrated players in the same space, have gained 31.7% and 26.2%, respectively.

Price Chart

Coming to the valuation story, XOM is trading at a premium. On a relative basis, the stock is trading at an 8.67x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 6.73x. BP and CVX are trading at 3.28x and 7.58x, respectively.

To conclude, despite the solid business outlook, it wouldn’t be wise to bet on XOM right away, given the stock’s overvaluation. Those who have already invested may hold the stock. Currently, XOM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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