#1 - Exxon Mobil (NYSE:XOM)
Oil stocks are cyclical stocks. They also tend to be low beta stocks. And when you have the chance to buy a quality stock like Exxon Mobil Corp. (NYSE: XOM) that’s still down about 4.75% in the last 12 months, it’s worth a close look.
Analysts have been expecting oil prices to rally for over a year. A number of factors have contributed to the price of a barrel of crude dropping below $70. But there are reasons to believe that oil prices are ready to move higher.
First, lower interest rates are likely to stimulate demand, as a weaker dollar will have a bullish effect on the price of oil. Exxon Mobil has attractive assets in Guyana and the Permian Basin, keeping it in a position to capitalize on those higher prices.
In addition to being a low beta stock, XOM stock trades at an attractive 13.3x forward earnings and pays a dividend that currently offers a 3.38% yield. Exxon Mobil is also a dividend aristocrat that has increased its payout 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
- $105.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $128.74 (21.6% Upside)
