Strong Crude Oil No Help for Chevron, Exxon Mobil

Nymex crude oil ended last week at $65.45 per barrel, up 8.9% year to date, outperforming the gain of 3.2% for the Dow Jones Industrial Average. Chevron Corporation  and Exxon Mobil Corporation are two “Dogs of the Dow” for 2018, and they ended last week with Chevron shares down 5.3% and Exxon Mobil shares up just 1.1% year to date.

Chevron and Exxon Mobil both reported quarterly earnings on Friday, and both companies missed analysts’ expectations. As “Dogs of the Dow,” what’s more important than earnings is the strategy to buy weakness on brand-name dividend stocks. Chevron has a dividend yield of 3.78%, and Exxon Mobil has a dividend yield of 3.71%, which make these stocks too cheap to ignore based on dividends. However, the oil giants are not cheap looking at their P/E ratios. Chevron’s P/E is 34.52, and Exxon Mobil’s is 27.60. The P/E for the Dow 30 is 26.85. (See also: How the Oil and Gas Industry Works.)


Higher crude oil prices did not help Chevron or Exxon Mobil energize their earnings reports released last Friday. …read more

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Category: CVX, XOM

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