Analysts were expecting Exxon Mobil Corp. (XOM) [Chart - News - Analysis] to report earnings of $1.03 for last quarter, but XOM missed expectations with actual earnings of $0.98---5 cents below the consensus estimate.

If you compare last quarter's earnings to the $2.59 the company made per share during the same quarter a year ago, you can see that XOM’s earnings are down this year.

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Also, if you compare XOM's 6.67% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 9.72% for the Major Integrated Oil & Gas industry as a whole during that same time frame, you can see that analysts expect XOM to underperform the industry in the future---which is a bad sign for the stock.

Drilling down a little deeper into the Major Integrated Oil & Gas industry, you can see how analysts believe XOM will stack up against some of the other stocks in the industry, like PetroChina Co. Ltd. (PTR) [Chart - News - Analysis] and Petrobras Energía SA (PZE) [Chart - News - Analysis], in the future. Analysts believe PTR's earnings are going to grow at a rate of 27.73% while PZE's earnings are going to grow at a rate of 32.20%.

Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.

- Earnings Season is Here - Find Out How to Trade It

- Using Options to Trade Earnings

- Understanding Stock Analyst Research and Recommendations

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The Major Integrated Oil & Gas industry contains a few standout stocks with very low (undervalued) Price/Earnings/Growth (PEG) ratios right now. Petrobras Energía Participaciones S.A. (PZE) leads the pack with a P/E/G ratio of 0.29. By comparison, Exxon Mobil Corp. (XOM) and PetroChina Co. Ltd. (PTR) have P/E/G ratios of 1.52 and 0.46 respectively. Looking for those stocks---such as Petrobras Energía Participaciones S.A.---with undervalued ratios may offer the potential for more upside in a struggling stock market.

Stock valuations are confusing right now to say the least but there are some best practice methods to get an approximation for whether a stock is over or undervalued. Most investors have moved beyond the basic P/E ratio and now use ratios like the P/E/G ratio popularized by Peter Lynch.

The concept is that a stock with a price to earnings ratio (P/E) that equals or is smaller than its growth rate is fairly or undervalued. Therefore, a P/E/G ratio that is equal to 1 or less is probably at a reasonable share price.

Stocks with higher P/E/G ratios tend to be very volatile so looking for companies with more "fair" valuations could smooth portfolio returns and reduce overall risk. You can learn more about fundamental analysis and valuation ratios for free here.

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