When the price of oil fell in 2014 and 2015, ExxonMobil’s stock price dropped in expectation that earnings would also eventually fall. The P/E ratio was below 10 for some time. Go to finance.yahoo.com and type “XOM” into the “Quote Lookup” box. Scroll down and click on “ExxonMobil Corporation.” Click on “Profile” and write a one-paragraph description of the company’s activities. Return to the summary page and write down the company’s P/E ratio. Is it still relatively low (under 15)? Compare ExxonMobil to others in the industry (Chevron, BP, etc.) based on the P/E ratio and the PEG ratio (the P/E ratio divided by annual growth). Go back to the summary page. Is the stock up or down from the prior day? (See the number in parentheses next to the share price.) Click on the “Analysts” heading. What are the Average Earnings Estimate, Low Earnings Estimate, and High Earnings Estimate? How many analysts follow earnings?
When the price of oil fell in 2014 and 2015, ExxonMobil’s stock price dropped in expectation that earnings would also eventually fall. The P/E ratio was below 10 for some time. Go to finance.yahoo.com and type “XOM” into the “Quote Lookup” box. Scroll down and click on “ExxonMobil Corporation.” Click on “Profile” and write a one-paragraph description of the company’s activities. Return to the summary page and write down the company’s P/E ratio. Is it still relatively low (under 15)? Compare ExxonMobil to others in the industry (Chevron, BP, etc.) based on the P/E ratio and the PEG ratio (the P/E ratio divided by annual growth). Go back to the summary page. Is the stock up or down from the prior day? (See the number in parentheses next to the share price.) Click on the “Analysts” heading. What are the Average Earnings Estimate, Low Earnings Estimate, and High Earnings Estimate? How many analysts follow earnings?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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