Ask Matt: Is now the time to buy Exxon Mobil?

Q: Is now the time to buy Exxon Mobil? 

A: Plunging oil prices have been vicious for Exxon Mobil (XOM) investors. There's not much hope for a bounce, either.

Shares of Exxon Mobil dropped $2.06, or 2.6%, to $76.80 Monday making the oil giant's shares a major weight on the Dow Jones industrial average. But it's been an even bigger anchor for its own investors. Shares of the oil company are down 17% this year - putting this major stock practically in a bear market.

The problem is analysts don't see much reason to be all that encouraged that the bounce is near. The average analyst on the stock rates the stock a "hold" as the company's adjusted earnings aren't expected to regain 2014 levels until after 2018. Adjusted earnings per share in 2015 are expected to drop 46% to $3.92 a share in 2015 and only rise by 4% in 2016.

Speculators might hold this stock and wait for the eventual turnaround. Exxon Mobil is trading for 16 times trailing earnings, a discount to the broad market that is trading for about 20 times earnings. Analysts expect the company's shares to be worth $83.79 a share in 18 months, according to data from S&P Capital IQ. That would be 9% upside from Monday's closing price. But those estimates could go out the window if crude oil prices continue to soften faster than many investors expected.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.