Key Stock Updates for Exxon Mobil, AMD, and Caterpillar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2025
0mins
Should l Buy XOM?
Source: NASDAQ.COM
Zacks Research Daily Highlights: Today's report features research on 16 major stocks, including Exxon Mobil, AMD, and Caterpillar, along with two micro-cap stocks, Ohio Valley Banc and Where Food Comes From, showcasing unique insights into smaller companies.
Exxon Mobil's Performance: Exxon has seen a 9.9% year-to-date gain, driven by key oil projects and a merger with Pioneer, but faces challenges in its Chemicals Division and commodity price volatility.
AMD's Growth Factors: AMD's shares have risen 33.3% this year, fueled by strong demand for EPYC processors and AI applications, although competition from NVIDIA and Intel poses risks.
Caterpillar and Micro-Cap Stocks: Caterpillar's stock has outperformed its industry, supported by a strong backlog, while Ohio Valley Banc and Where Food Comes From have shown significant gains, driven by strategic growth and market expansion despite facing various operational challenges.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 149.930
Low
114.00
Averages
132.17
High
158.00
Current: 149.930
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rising Energy Demand Boosts Fossil Fuel Outlook
- Fossil Fuel Demand Surge: Soaring energy demands from data centers and a modernizing global economy are expected to boost fossil fuel demand, with rising natural gas exports anticipated to provide stable revenue streams for energy companies despite renewable energy growth.
- Chevron's Reliable Dividends: Chevron (CVX) has increased its dividend for 37 consecutive years, currently yielding 3.7%, and expects a 10% annual growth in free cash flow over the next five years, bolstered by its $55 billion acquisition of Hess to enhance its resource base in Guyana.
- Enbridge's Steady Performance: Enbridge (ENB) has raised its dividend for 28 years, with a current yield of 5% and a responsible payout ratio of 66%, ensuring stable cash flow from its oil and gas transportation and utility operations across North America.
- ExxonMobil's Growth Potential: ExxonMobil (XOM) has raised its dividend for 42 years, currently yielding 2.8%, and has invested $59.5 billion in acquiring Pioneer Natural Resources, doubling its land assets in the Permian Basin, indicating a strong outlook for future dividend increases.
See More
Energy Companies Show Strong Cash Flows Yet Low Valuations Persist
- Strong Cash Flow Performance: The energy sector's free cash flow yield ranges from 7% to 9%, significantly exceeding the broader market average, indicating enhanced profitability and cash return capabilities, despite overall low valuations.
- Valuation Discrepancy: The S&P 500 Energy sector trades at a forward P/E of approximately 12.5x, well below the broader S&P 500's 21x, suggesting that market pessimism towards the energy sector does not align with its actual financial performance, indicating potential for repricing.
- Shrinking Industry Size: Energy's share of the S&P 500 has dwindled to just 4%, down from over 13% in 2008, reflecting decreased investor attention towards the sector, even as its cash flow and financial health continue to improve.
- Institutional Underweight: Despite strong fundamentals, institutional ownership of energy stocks remains below historical averages, with many portfolios structurally underweight due to ESG-driven divestments and tech sector outperformance, potentially leading to undervalued investment opportunities in the future.
See More
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
Energy Stocks Unexpectedly Surge, Market Outlook Optimistic
- Oil Price Recovery: As of February 2026, West Texas Intermediate (WTI) prices have rebounded to $57 per barrel, down $15 from early 2025, indicating renewed investor interest in energy stocks amidst a backdrop of previously declining oil prices.
- Energy Sector Leadership: The State Street Energy Select Sector SPDR ETF has surged 23% year-to-date, significantly outperforming the S&P 500's 2% increase, reflecting a resurgence of investor confidence in the energy sector and suggesting potential future investment opportunities.
- Impact of U.S. Foreign Policy: U.S. military actions in Venezuela have sparked optimistic expectations for major oil companies like Chevron and ExxonMobil, which may gain access to the world's largest oil reserves, further driving their stock prices higher.
- Shift in Investor Sentiment: As interest in AI-related stocks wanes, investors are turning to energy stocks as a reliable long-term investment choice, although the market must remain cautious of potential geopolitical risks.
See More
Energy Stocks Surge Driven by U.S. Policy and AI Fatigue
- Energy Stock Surge: As of February 11, 2026, the State Street Energy Select Sector SPDR ETF has risen 23% year-to-date, significantly outperforming the S&P 500's less than 2% increase, indicating strong investor confidence in the energy sector.
- Impact of U.S. Policy: Following the U.S. military's detention of Venezuelan President Maduro on January 3, investors believe that major oil companies like Chevron and ExxonMobil may gain special access to Venezuela's 19.4 billion barrels of oil reserves, potentially driving oil prices higher and enhancing their market positions.
- Escalating Geopolitical Risks: With rising tensions between the U.S. and Iran, particularly the deployment of a carrier group in the region, the market anticipates that any conflict could lead to a temporary spike in global oil prices, further stimulating energy stock performance.
- Shift to Energy Investments: Amidst fatigue in AI-related stocks, some investors are reallocating funds to energy stocks, viewing them as a more reliable long-term investment, although experts caution that restoring Venezuela's oil sector will require years and substantial capital.
See More
Judge Rejects California AG's Motion in Exxon Defamation Case
- Judge's Ruling: A U.S. district judge has rejected California Attorney General Rob Bonta's motion to dismiss Exxon Mobil's (XOM) defamation lawsuit, indicating that the legal proceedings will continue, which could impact the company's relationship with the government.
- Immunity Controversy: The judge stated that Bonta's claim of immunity due to his official duties is unfounded, suggesting he may be held legally accountable for his statements, thereby increasing his risk in public opinion.
- Lawsuit Background: Exxon filed the lawsuit against Bonta in January 2025, accusing him of making false statements while criticizing the company's advanced plastics recycling initiatives, reflecting the company's aggressive stance against environmental critics, which may affect its brand image.
- Escalating Environmental Controversy: As the lawsuit progresses, Exxon has shown a stronger resistance to environmentalists and critics, which could influence its public image and market performance regarding climate change issues.
See More
Rising Energy Demand Boosts Fossil Fuel Outlook
- Fossil Fuel Demand Surge: Soaring energy demands from data centers and a modernizing global economy are expected to boost fossil fuel demand, with rising natural gas exports anticipated to provide stable revenue streams for energy companies despite renewable energy growth.
- Chevron's Reliable Dividends: Chevron (CVX) has increased its dividend for 37 consecutive years, currently yielding 3.7%, and expects a 10% annual growth in free cash flow over the next five years, bolstered by its $55 billion acquisition of Hess to enhance its resource base in Guyana.
- Enbridge's Steady Performance: Enbridge (ENB) has raised its dividend for 28 years, with a current yield of 5% and a responsible payout ratio of 66%, ensuring stable cash flow from its oil and gas transportation and utility operations across North America.
- ExxonMobil's Growth Potential: ExxonMobil (XOM) has raised its dividend for 42 years, currently yielding 2.8%, and has invested $59.5 billion in acquiring Pioneer Natural Resources, doubling its land assets in the Permian Basin, indicating a strong outlook for future dividend increases.
See More
Energy Companies Show Strong Cash Flows Yet Low Valuations Persist
- Strong Cash Flow Performance: The energy sector's free cash flow yield ranges from 7% to 9%, significantly exceeding the broader market average, indicating enhanced profitability and cash return capabilities, despite overall low valuations.
- Valuation Discrepancy: The S&P 500 Energy sector trades at a forward P/E of approximately 12.5x, well below the broader S&P 500's 21x, suggesting that market pessimism towards the energy sector does not align with its actual financial performance, indicating potential for repricing.
- Shrinking Industry Size: Energy's share of the S&P 500 has dwindled to just 4%, down from over 13% in 2008, reflecting decreased investor attention towards the sector, even as its cash flow and financial health continue to improve.
- Institutional Underweight: Despite strong fundamentals, institutional ownership of energy stocks remains below historical averages, with many portfolios structurally underweight due to ESG-driven divestments and tech sector outperformance, potentially leading to undervalued investment opportunities in the future.
See More
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
Energy Stocks Unexpectedly Surge, Market Outlook Optimistic
- Oil Price Recovery: As of February 2026, West Texas Intermediate (WTI) prices have rebounded to $57 per barrel, down $15 from early 2025, indicating renewed investor interest in energy stocks amidst a backdrop of previously declining oil prices.
- Energy Sector Leadership: The State Street Energy Select Sector SPDR ETF has surged 23% year-to-date, significantly outperforming the S&P 500's 2% increase, reflecting a resurgence of investor confidence in the energy sector and suggesting potential future investment opportunities.
- Impact of U.S. Foreign Policy: U.S. military actions in Venezuela have sparked optimistic expectations for major oil companies like Chevron and ExxonMobil, which may gain access to the world's largest oil reserves, further driving their stock prices higher.
- Shift in Investor Sentiment: As interest in AI-related stocks wanes, investors are turning to energy stocks as a reliable long-term investment choice, although the market must remain cautious of potential geopolitical risks.
See More
Energy Stocks Surge Driven by U.S. Policy and AI Fatigue
- Energy Stock Surge: As of February 11, 2026, the State Street Energy Select Sector SPDR ETF has risen 23% year-to-date, significantly outperforming the S&P 500's less than 2% increase, indicating strong investor confidence in the energy sector.
- Impact of U.S. Policy: Following the U.S. military's detention of Venezuelan President Maduro on January 3, investors believe that major oil companies like Chevron and ExxonMobil may gain special access to Venezuela's 19.4 billion barrels of oil reserves, potentially driving oil prices higher and enhancing their market positions.
- Escalating Geopolitical Risks: With rising tensions between the U.S. and Iran, particularly the deployment of a carrier group in the region, the market anticipates that any conflict could lead to a temporary spike in global oil prices, further stimulating energy stock performance.
- Shift to Energy Investments: Amidst fatigue in AI-related stocks, some investors are reallocating funds to energy stocks, viewing them as a more reliable long-term investment, although experts caution that restoring Venezuela's oil sector will require years and substantial capital.
See More
Judge Rejects California AG's Motion in Exxon Defamation Case
- Judge's Ruling: A U.S. district judge has rejected California Attorney General Rob Bonta's motion to dismiss Exxon Mobil's (XOM) defamation lawsuit, indicating that the legal proceedings will continue, which could impact the company's relationship with the government.
- Immunity Controversy: The judge stated that Bonta's claim of immunity due to his official duties is unfounded, suggesting he may be held legally accountable for his statements, thereby increasing his risk in public opinion.
- Lawsuit Background: Exxon filed the lawsuit against Bonta in January 2025, accusing him of making false statements while criticizing the company's advanced plastics recycling initiatives, reflecting the company's aggressive stance against environmental critics, which may affect its brand image.
- Escalating Environmental Controversy: As the lawsuit progresses, Exxon has shown a stronger resistance to environmentalists and critics, which could influence its public image and market performance regarding climate change issues.
See More
