Energy ETF Faces Key Resistance Level Challenge
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Resistance Testing: The Energy Select Sector SPDR ETF (XLE) is testing the $50 resistance level for the fourth time since 2014, and a successful breakout could lead to new all-time highs, indicating increased market interest in energy stocks.
- Supply Chain Disruptions: A massive U.S. snowstorm has disrupted crude and natural gas output, affecting Gulf Coast refinery operations and pushing oil prices higher, highlighting the impact of geopolitical risks on the market.
- Institutional Investment Dynamics: Analysts note that institutions are underweight in energy stocks, and any geopolitical or supply shortage developments could trigger inflows into the sector, potentially revitalizing it.
- Potential Stock Recommendations: Solaris Energy Infrastructure (market cap $2 billion, 120% GAAP annual EPS growth) and BKV Corporation (market cap $2 billion, expected 50% GAAP EPS growth in 2026) are identified as promising energy stocks with strong growth potential, likely to break through resistance levels.
Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 134.840
Low
114.00
Averages
132.17
High
158.00
Current: 134.840
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.
