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Exxon Mobil now has a higher 12-month forward price-to-earnings ratio than Nvidia, according to Sam Ro. The energy giant’s forward PE stands at 21.4x, just above Nvidia’s 21.1x.
Ro also points out that the largest U.S. energy companies currently trade at an average forward PE of 20.0x, a level close to the S&P 500’s 20.7x. This data provides context for how energy stocks compare to both a leading technology firm and the broader stock market.
Sam Ro has previously discussed factors influencing energy and investment markets. He shared Goldman Sachs data showing that a 10 percent increase in oil prices can raise headline CPI by 28 basis points. In another note, Ro highlighted Greg Abel’s remarks that Berkshire Hathaway’s large cash position does not indicate a pullback from investing. These recent observations add context to valuations among large-cap U.S. companies.