Is Exxon Mobil A Pick for 2013?

Total also carries a small discount to Exxon Mobil with a trailing P/E of 8, while Chevron actually matches the larger company at 9 times trailing earnings. Given that Chevron’s net income came in 33% lower last quarter compared to the third quarter of 2011, we think that we would avoid it. Total boasts a divided yield of about 5%, and might be considered for that alone. It trades at 7 times consensus earnings for 2013, suggesting that analysts actually expect higher net income here next year. If there turns out to be a good reason why it is supposed to improve while Exxon Mobil’s earnings decline, then Total might be a potential value play as well.

Oil majors seem to offer good value opportunities, including Exxon Mobil. It trades at a premium to its peers, but it does also have some advantages over those other companies. BP and Total might also be worth considering.