NYSE:XOM

Exxon Mobil (XOM)

163.54
+0.27 (0.17%)
as of Sep 18, 2026, 8:00:00 pm Market Open.
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COMMENT
They report Friday. Keep an open mind. The major oils are starting to make a serious effort to offset the damage of oil and shrink their large carbon footprints. This may make ESG money managers interested in buying their stock.
SELL
They will defend their dividend and are benefiting from the rally in oil prices. They will eventually have to transition to other energy. He would be looking to exit.
BUY
It reports Friday. It could surprise to the upside. He expects the CEO to talk a lot about how they're cutting carbon emissions. Yes, even the oil companies have to care about the environment. Will they conserve or buyback shares and raise dividends? Oil prices are up and and costs down, so this could surprise to the upside.
BUY

Integrated company. Under-owned. Energy stocks have been the last to get some mojo. The XOP is still flirting with the downtrend line. If the rest of the commodities keep going, the energy stocks should participate. Pretty good, conservative way to be there. CLR and PXD also look good. Or buy the XOP, which reduces business risk.

TOP PICK
They have just announced that they will not cut their dividends. On a global basis, he is adding to his energy exposure. He is staying out of Canada for now since he believes government is not very friendly towards it and will harm the sector. They are sitting on cheap oil in Guyana. Right now pays around a 7% dividend. (Analysts’ price target is $51.52)
DON'T BUY
He would not be a buyer. They are using their balance sheet to pay their dividends. It will probably rise with the sector though. By pursuing to in meeting demands, it is going in the right direction. There are much better names to own in the space.
HOLD
At these levels, energy is extremely depressed. If you have an energy position, hold it. It is good value and there is upside. As the economy continues to grow, demand will grow. Of course, there is the renewable energy story but this will take some time. At these levels, it is an interesting opportunity.
SELL
He has been recommending this stock in the past. He still thinks this is the best managed company out there. It has had numerous negative transits (Sell Signals). He feels we need to hear from them and they need to resize the dividend relative to what they can pay. It is almost yielding 11%. There are multiple sell signals.
DON'T BUY
Looking at the long term history, this has been a destroyer of capital. Long term, energy is not where you want to be.
DON'T BUY

He has been underweighting energy. Chevron would be his pick over Exxon. Right now, energy is facing headwinds right now, especially with people staying at home. He would prefer looking at green energy in North America or Europe.

DON'T BUY

Near-term, he's cautious about the energy sector. XOM has a broad base of assets and pays a high 8% dividend, but is underperforming the S&P. XOM has been struggling as a stock. He prefers a company outperforming peers, such as CNQ. CNQ pays a 6.5% dividend.

WEAK BUY

A play on global oil. The coronavirus has taken out 20% demand because of China, but there will be a bounce-back in oil. Global oil has been a tough slog for the last 5 years. You can probably buy it and collect a nice dividend, but BP has a better payout. Don't expect much capital appreciation.

PAST TOP PICK
(A Top Pick Feb 08/19, Down 3%) He still likes holding it. It is in his Top 15 US picks. It yields 5%. You get paid to wait and he thinks it will be stable. Their patents on clean tech are number one in the world, he believes.
COMMENT
He can't poke any holes in this. Dividend is okay, but little production growth though that doesn't matter much these days. There's some free cash flow generation. But this faces the same risk as the oil sector. XOM has the same downside as the sector, but XOM offers more upside.
PAST TOP PICK
(A Top Pick Feb 08/19, Down 4%) This one has ever been cheaper. This is a value/contrarian play. It is one of the best managed companies in the world.
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