Lockheed Martin, Exxon Mobil And More: CNBC's 'Final Trades'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2025
0mins
Should l Buy XOM?
Source: Benzinga
Lockheed Martin and Alphabet Partnership: Lockheed Martin has partnered with Alphabet Inc. to integrate advanced generative AI into its AI Factory ecosystem, aiming to enhance AI-driven solutions for national security and aerospace.
Market Insights: Analysts discussed various investment opportunities, highlighting Lockheed Martin's stock rise, Exxon Mobil's maintained Overweight rating despite a price target reduction, and the potential for cyclical rebounds in the iShares U.S. Industrials ETF.
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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: 150.630
Low
114.00
Averages
132.17
High
158.00
Current: 150.630
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.
Iran Conflict Drives Oil Prices Surge
- Oil Price Surge Impact: Since March, the conflict in Iran has driven Brent crude prices to over $120 per barrel by late April, propelling oil stocks like ExxonMobil, which rose 13% in March alone.
- Asset Advantage: As the second-largest oil company globally, ExxonMobil boasts low-cost, high-quality production assets, particularly in the Permian Basin and Guyana, with a target of 50% of new wells utilizing its lightweight proppant technology by the end of 2026.
- Financial Performance Volatility: Despite a 6% hit to global oil-equivalent production due to the Iran conflict, Exxon's net income fell to $4.5 billion in Q1, yet its global supply chain and advantaged assets position it well to navigate supply disruptions.
- Consistent Shareholder Returns: ExxonMobil has achieved $15.6 billion in cumulative structural cost savings since 2019 and returned $9.2 billion to shareholders in Q1 alone, including $4.3 billion in dividends, demonstrating stability and commitment to investors amid market turmoil.
See More
ISS Recommends Shareholders Reject Exxon's Relocation Proposal
- Shareholder Voting Advice: Institutional Shareholder Services (ISS) advised shareholders on Tuesday to reject Exxon Mobil's (XOM) proposal to relocate its incorporation to Texas, arguing that such a move would impose greater hurdles in holding directors and officers accountable, potentially impacting corporate governance transparency.
- Relocation Motivation Analysis: Exxon aims to end its registration in New Jersey, with CEO Darren Woods stating that moving to Texas would help protect the company from shareholder 'abuse,' particularly frivolous lawsuits in certain jurisdictions, which could affect operational efficiency.
- Employee Distribution Status: Exxon noted that approximately 30% of its global workforce is already based in Texas, and all of its U.S. research facilities are located there, indicating a growing business focus in Texas that could enhance the rationale for the relocation proposal.
- Support for Shareholder Proposal: ISS also recommended that shareholders support a resolution from the New York City Police Pension Fund aimed at making it easier for retail investors to vote against the board's wishes, further empowering shareholders in corporate governance.
See More
ExxonMobil's Outlook for the Next Five Years
- Strong Stock Performance: Over the past five years, ExxonMobil's shares have surged more than 150%, significantly outperforming the S&P 500's gain of approximately 80%, highlighting its stability and attractiveness as a blue-chip investment.
- Diversified Business Model: Operating in over 56 countries, ExxonMobil benefits from high oil prices in its upstream business, while its stable midstream operations generate consistent profits by charging for resource transportation, making it a more appealing investment than standalone companies.
- Future Growth Potential: Analysts project a 19% CAGR for EPS from 2025 to 2028, and if ExxonMobil meets these estimates, its stock could rise about 60% over the next five years, indicating strong growth prospects ahead.
- Strategic Expansion Initiatives: To reduce reliance on the Middle East, ExxonMobil is investing in high-growth markets like Guyana, while also expanding LNG exports and its carbon capture and storage business, further driving future earnings growth.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Activist Investor Sees Doubling Potential for BWX Technologies
- Significant Market Potential: Ananym Capital Management believes BWX Technologies' stock could double in the coming years, primarily driven by the commercialization of its mothballed nuclear reactor design to meet surging energy demand.
- Stock Price Growth Drivers: With a market value of $19 billion, BWX Technologies' shares have risen approximately 93% over the past 12 months, fueled by increasing energy needs, defense spending, and investments in nuclear power.
- Diverse Value Creation Paths: Ananym argues that BWX Technologies could see its stock price grow by about 45% as a supplier to large reactor and small modular reactor manufacturers, and with no clear market leader, BWX has the opportunity to develop its mPower technology independently or through joint ventures.
- Policy Support Outlook: The Trump administration has set a goal to quadruple nuclear energy capacity by 2050, providing policy backing for BWX Technologies' future growth and enhancing its competitive position in the market.
See More
Brent Crude Oil Prices Surge 90%, Impacting Market Dynamics
- Surge in Oil Prices: Brent crude oil prices have surged over 90% this year to approximately $120 per barrel, disrupting shipments through the Strait of Hormuz, which accounts for about 25% of global maritime oil trade, consequently driving up oil stocks, particularly Occidental Petroleum, Chevron, and ExxonMobil.
- Oxy's Market Position: Occidental Petroleum's future portfolio has about 80% of its oil breakeven price below $50 per barrel, allowing the company to maintain profitability, reduce debt, and increase dividends as oil prices rise, with expectations for further stock price increases by year-end.
- Stability of Chevron and ExxonMobil: Both Chevron and ExxonMobil have upstream breakeven oil prices below $50 per barrel, and their expansion into overseas oil fields and capacity increases in existing fields will enhance long-term growth potential, despite facing short-term pressures in the downstream market.
- Dividend Growth Potential: Chevron and ExxonMobil have raised dividends for 39 and 43 consecutive years, respectively, positioning them to join the elite
See More
Iran Conflict Drives Oil Prices Surge
- Oil Price Surge Impact: Since March, the conflict in Iran has driven Brent crude prices to over $120 per barrel by late April, propelling oil stocks like ExxonMobil, which rose 13% in March alone.
- Asset Advantage: As the second-largest oil company globally, ExxonMobil boasts low-cost, high-quality production assets, particularly in the Permian Basin and Guyana, with a target of 50% of new wells utilizing its lightweight proppant technology by the end of 2026.
- Financial Performance Volatility: Despite a 6% hit to global oil-equivalent production due to the Iran conflict, Exxon's net income fell to $4.5 billion in Q1, yet its global supply chain and advantaged assets position it well to navigate supply disruptions.
- Consistent Shareholder Returns: ExxonMobil has achieved $15.6 billion in cumulative structural cost savings since 2019 and returned $9.2 billion to shareholders in Q1 alone, including $4.3 billion in dividends, demonstrating stability and commitment to investors amid market turmoil.
See More
ISS Recommends Shareholders Reject Exxon's Relocation Proposal
- Shareholder Voting Advice: Institutional Shareholder Services (ISS) advised shareholders on Tuesday to reject Exxon Mobil's (XOM) proposal to relocate its incorporation to Texas, arguing that such a move would impose greater hurdles in holding directors and officers accountable, potentially impacting corporate governance transparency.
- Relocation Motivation Analysis: Exxon aims to end its registration in New Jersey, with CEO Darren Woods stating that moving to Texas would help protect the company from shareholder 'abuse,' particularly frivolous lawsuits in certain jurisdictions, which could affect operational efficiency.
- Employee Distribution Status: Exxon noted that approximately 30% of its global workforce is already based in Texas, and all of its U.S. research facilities are located there, indicating a growing business focus in Texas that could enhance the rationale for the relocation proposal.
- Support for Shareholder Proposal: ISS also recommended that shareholders support a resolution from the New York City Police Pension Fund aimed at making it easier for retail investors to vote against the board's wishes, further empowering shareholders in corporate governance.
See More
ExxonMobil's Outlook for the Next Five Years
- Strong Stock Performance: Over the past five years, ExxonMobil's shares have surged more than 150%, significantly outperforming the S&P 500's gain of approximately 80%, highlighting its stability and attractiveness as a blue-chip investment.
- Diversified Business Model: Operating in over 56 countries, ExxonMobil benefits from high oil prices in its upstream business, while its stable midstream operations generate consistent profits by charging for resource transportation, making it a more appealing investment than standalone companies.
- Future Growth Potential: Analysts project a 19% CAGR for EPS from 2025 to 2028, and if ExxonMobil meets these estimates, its stock could rise about 60% over the next five years, indicating strong growth prospects ahead.
- Strategic Expansion Initiatives: To reduce reliance on the Middle East, ExxonMobil is investing in high-growth markets like Guyana, while also expanding LNG exports and its carbon capture and storage business, further driving future earnings growth.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Activist Investor Sees Doubling Potential for BWX Technologies
- Significant Market Potential: Ananym Capital Management believes BWX Technologies' stock could double in the coming years, primarily driven by the commercialization of its mothballed nuclear reactor design to meet surging energy demand.
- Stock Price Growth Drivers: With a market value of $19 billion, BWX Technologies' shares have risen approximately 93% over the past 12 months, fueled by increasing energy needs, defense spending, and investments in nuclear power.
- Diverse Value Creation Paths: Ananym argues that BWX Technologies could see its stock price grow by about 45% as a supplier to large reactor and small modular reactor manufacturers, and with no clear market leader, BWX has the opportunity to develop its mPower technology independently or through joint ventures.
- Policy Support Outlook: The Trump administration has set a goal to quadruple nuclear energy capacity by 2050, providing policy backing for BWX Technologies' future growth and enhancing its competitive position in the market.
See More
Brent Crude Oil Prices Surge 90%, Impacting Market Dynamics
- Surge in Oil Prices: Brent crude oil prices have surged over 90% this year to approximately $120 per barrel, disrupting shipments through the Strait of Hormuz, which accounts for about 25% of global maritime oil trade, consequently driving up oil stocks, particularly Occidental Petroleum, Chevron, and ExxonMobil.
- Oxy's Market Position: Occidental Petroleum's future portfolio has about 80% of its oil breakeven price below $50 per barrel, allowing the company to maintain profitability, reduce debt, and increase dividends as oil prices rise, with expectations for further stock price increases by year-end.
- Stability of Chevron and ExxonMobil: Both Chevron and ExxonMobil have upstream breakeven oil prices below $50 per barrel, and their expansion into overseas oil fields and capacity increases in existing fields will enhance long-term growth potential, despite facing short-term pressures in the downstream market.
- Dividend Growth Potential: Chevron and ExxonMobil have raised dividends for 39 and 43 consecutive years, respectively, positioning them to join the elite
See More
