Essay sample - Financial Analysis Exercise II

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Financial Analysis Exercise II Essay example
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Financial Analysis Name: Number: Course: Lecturer: Date: Financial analysis-Exxon Mobil Corp (XOM) In this analysis, we are going to compare the stock market price of Exxon Mobil Corporation (XOM) performance against that of Dow Jones Industrial Average for the last twelve months…

Introduction

Exxon Mobil in the world’s number one highly capitalized energy company head quartered in Irving, Texas. It has the highest revenue base in the world and the biggest publicly traded company. The stock is quoted in New York Stock Exchange (NYSE) as XOM. From the graph that we have, we can observe that the stock has been moving in the same direction as the DJI over the last twelve months. The direction of the stock’s movement can be concluded that it has been largely determined by the direction that the DJI has been taking. This means that it has been less affected by other external factors at the market other than the market movement. The market’s movement is largely influenced by macroeconomic factors such as the overall economic stability. It can be observed that, between March and the beginning of July 2012, the price was moving at relatively higher rate in price movement, than the market average. As the market dropped points, the stock dropped in price at a higher percentage than the market or as it gained the price of the stock likewise, gained at relatively higher price. The difference though, was not that significant, but it was more or less the same direction. Between July and mid September, the stock was averaging the same as the market average. Between mid September and mid December the average movement of the stock price was better than the market average in movement. ...
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