#6 - Exxon Mobil (NYSE:XOM)
Exxon Mobil Corp. (NYSE: XOM) is the last of the cyclical stocks on this list of dividend aristocrats. In this case, the company is tied to the fortunes of the oil and gas market. As of this writing, oil prices have broken below $80 as global demand is keeping a ceiling on prices.
However, there are many reasons to believe that demand will grow, and it may start with interest rate cuts. But you also have to consider geopolitical tensions, particularly if the Middle East conflict escalates and expands.
That outlook is supported by analysts who are projecting 14% earnings growth and a 16% increase in the XOM stock price. Exxon is also attractively valued at around 13x forward earnings, which is around the average forward P/E of integrated oil and gas companies. Exxon Mobil also generates significant free cash flow that will allow it to continue to fund acquisitions as it did with Pioneer Resources in 2023.
The total return in XOM stock over the last five years is 109%. The company has increased its dividend for 41 consecutive years.
About Exxon Mobil
Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas.
Read More - Current Price
- $118.45
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $129.95 (9.7% Upside)
