June 8, 2011

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Oil that is, Black Gold, Texas Tea
Exxon-Mobil (XOM,$XOM) Reports Major Gulf Discovery, ValuEngine.com Rates Energy Giant a Buy
Another down day for stocks was tempered by news of a major Gulf of Mexico discovery by Exxon-Mobil (XOM). While stocks were down, oil prices rose on news that OPEC has declined to increase production. With the hot days of Summer upon us, crude over $100/barrel on the New York Mercantile Exchange-- yet again-- could make travel to the shore a more expensive proposition. The news seems destined to keep major oil producers profits pegged to record levels. ValuEngine has issued a BUY recommendation for Exxon-Mobil on Jun. 08, 2011. Based on the information we have gathered and our resulting research, we feel that Exxon-Mobil has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and risk. Based on available data as of Jun. 08, 2011, we believe that XOM should be trading at $84.83. This makes XOM 5.69% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For XOM, we base this on actual earnings per share (EPS) for the previous four quarters of $7.49, forecasted EPS for the next four quarters of $9.19, and correlations to the 30-year Treasury bond yield of 4.26%.

Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Exxon Mobil is engaged in exploration for, and mining and sale of coal, copper and other minerals. Please Click Here to Sign Up for a FREE TRIAL of Our Award-Winning Stock Valuation and Forecast Service

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 56.47% 43.53% 23.05% 16.01%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.56% -0.16% 0.48% 0.66% 0.11% -0.87% -0.08% 0.11% 0.20% 0.11% 0.07% -0.23% 0.26% 0.04% 0.00% 0.14%

MTD
-0.12% -2.12% -2.92% -1.72% -2.72% -4.63% -2.86% -1.66% -1.65% -2.88% -2.70% -1.17% -3.22% -2.83% -2.61% -1.27%

YTD
11.90% -11.65% -7.81% 1.42% 5.61% -9.70% 0.53% -7.28% -0.28% -2.95% 12.16% 0.05% -1.80% 2.15% -6.50% 3.69%

Valuation
2.06% undervalued 6.01% undervalued 6.86% undervalued 0.53% undervalued 2.79% undervalued 4.89% undervalued 5.25% undervalued 0.95% overvalued 2.81% undervalued 5.32% undervalued 1.94% undervalued 14.81% overvalued 2.99% overvalued 2.87% undervalued 4.04% overvalued 4.45% overvalued

Last 12MReturn
30.12% 44.60% 50.30% 20.62% 37.65% 6.79% 18.68% 20.50% 13.00% 31.76% 22.09% 36.73% 44.42% 26.21% 22.10% 27.48%

P/E Ratio
17.95 18.48 34.71 26.62 37.79 29.05 29.87 31.6 27.65 28.16 31.28 25.05 56.32 33.55 20.18 23.83

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