Exxon Mobil Stock Is One Of The Worst To Own In August

Plus, 24 other stocks that typically underperform this month

facebook X logo linkedin

This commentary first appeared on Forbes Great Speculations, where Schaeffer's Investment Research is a regular contributor.

August is officially underway, and Schaeffer’s Senior Quantitative Analyst Rocky White is back once again to outline the best and worst stocks to own for the new month. High energy prices recently helped Exxon Mobil Corp (NYSE:XOM) secure record profits for the second quarter, and the equity now stands slightly more than 50% higher year-to-date. However, seasonality shows XOM could cool off as August heats up, with the security appearing on White’s list of 25 worst S&P 500 performers for the month, looking back over the last decade.

According to White’s data, Exxon Mobil stock averaged an August loss of 3.8% over the past 10 years, and has finished the month positive only twice. Digging deeper, the last time the equity turned in an August win was in 2014 after adding a paltry 0.5% over the 31-day period.

At last glance, XOM was down 2.4% to trade at $91.81. From its current perch, a similar move lower would put the shares back below the 60-day moving average, as well as below the $90 level. Already down 5.5% within the first few sessions of August, a continued spiral would result in Exxon Mobil’s second negative monthly performance in 2022.

XOM Chart August 3

An unwinding of optimism amongst short-term options traders could have bearish implications. This is per XOM's Schaeffer's put/call open interest ratio (SOIR) of 0.68 that ranks higher than just 26% of readings in its annual range, which implies these traders are operating with a call-bias.

Further, a shift in sentiment amongst the brokerage bunch could send the shares lower still. Specifically, eight of the 14 analysts in coverage still recommend a “buy” or better. What’s more, the 12-month consensus price target of $102.90 is a 12.1% premium to Exxon Mobil’s current level of trading.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI