ExxonMobil Shares Surge 34% Amid Rising Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy XOM?
Source: Fool
- Stock Performance: ExxonMobil (XOM) has surged 34% this year, particularly impressive given the S&P 500's 4% decline, indicating strong performance and market confidence in the oil and gas sector.
- Historical Highs: The company's stock recently hit an all-time high of $162.44, and although it closed slightly lower at $161 on Monday, it remains close to its peak, reflecting optimistic investor expectations for future growth.
- Valuation Analysis: ExxonMobil's trailing P/E ratio stands at 24, with a forward P/E of 21, aligning with the S&P 500 averages, suggesting a reasonable valuation that may attract further investor interest.
- Investment Outlook: Despite the volatility risks associated with oil prices, ExxonMobil's 2.6% dividend yield makes it an attractive option for investors, particularly those seeking stable income amid increasing market uncertainties.
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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: 159.670
Low
114.00
Averages
132.17
High
158.00
Current: 159.670
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.
ExxonMobil Shares Surge 34% Amid Rising Oil Prices
- Stock Performance: ExxonMobil (XOM) has surged 34% this year, particularly impressive given the S&P 500's 4% decline, indicating strong performance and market confidence in the oil and gas sector.
- Historical Highs: The company's stock recently hit an all-time high of $162.44, and although it closed slightly lower at $161 on Monday, it remains close to its peak, reflecting optimistic investor expectations for future growth.
- Valuation Analysis: ExxonMobil's trailing P/E ratio stands at 24, with a forward P/E of 21, aligning with the S&P 500 averages, suggesting a reasonable valuation that may attract further investor interest.
- Investment Outlook: Despite the volatility risks associated with oil prices, ExxonMobil's 2.6% dividend yield makes it an attractive option for investors, particularly those seeking stable income amid increasing market uncertainties.
See More
ExxonMobil Stock Soars 34% Yet Valuation Remains Reasonable
- Stock Performance: ExxonMobil's shares have surged 34% this year, particularly impressive given the S&P 500's 4% decline, as it approaches its all-time high of $162.44, closing just above $161 on Monday, leading investors to speculate on its future trajectory.
- Valuation Analysis: Despite its strong stock performance, ExxonMobil trades at a trailing P/E of 24 and a forward P/E of 21, aligning with the S&P 500 averages, indicating that its valuation remains reasonable and may attract long-term investors.
- Analyst Expectations: Analysts have recently raised their price targets for ExxonMobil, with the most bullish target set at $186, while the consensus average is just under $149, suggesting an 8% downside risk, although there is still potential for further gains.
- Market Environment: With rising oil prices and geopolitical tensions, ExxonMobil's 2.6% dividend yield appeals to income-seeking investors, and despite the inherent volatility of oil and gas stocks, it is viewed as a solid long-term investment option.
See More
Market Update: Opportunities in Gold and Commodities
- Gold Investment Opportunity: DoubleLine CEO Jeffrey Gundlach indicated a favorable opportunity to invest in gold and commodities at current levels, despite gold futures dropping 16% since the war began, reflecting a strong demand for safe-haven assets in the market.
- Commodity Price Fluctuations: In March, West Texas Intermediate crude futures rose 33% and Brent crude futures increased by 38%, indicating robust demand for energy products, which could drive the performance of related stocks.
- Poor Stock Market Performance: The Nasdaq Composite and S&P 500 indices fell by 3% and 4.3% respectively in March, while the Dow Jones dropped about 5.7%, suggesting weakened investor confidence in stocks, prompting a potential shift towards commodities.
- GameStop and KB Home Reports: GameStop shares rose 7.7% over the past three months but are down 35% from May highs; KB Home shares fell 6.4% in the same period, down 22.5% from September highs, highlighting volatility in the retail and real estate sectors.
See More
Asian Nations Seek Increased U.S. Energy Supply
- Growing Energy Demand: Asian countries like Japan, South Korea, and Taiwan are seeking to increase energy purchases from the U.S. to reduce dependence on Middle Eastern oil and gas exports, particularly as tanker traffic through the Strait of Hormuz has plummeted due to Iranian attacks.
- Stable Supply Strategy: Interior Secretary Doug Burgum highlighted that the Trump administration's energy dominance agenda aims to provide U.S. allies with a stable alternative energy supply, ensuring they do not rely on countries that support war or terrorism.
- Japan's Energy Challenges: Japan's Vice Minister of Economy, Trade and Industry, Takehiko Matsuo, noted that the country relies on the Strait for 90% of its oil imports and prioritizes finding alternative supplies, although the process is challenging, indicating strong anticipation for U.S. energy.
- Alaska's Role: Burgum emphasized that Alaska will play a crucial role in providing secure energy to Asia, with recent oil and gas lease sales and a massive LNG project being prioritized, ensuring energy supply security as exports from Alaska take only eight days to reach Asian allies.
See More
Iran Conflict Drives Spotlight on Energy Stocks
- ExxonMobil's Advantageous Assets: ExxonMobil (XOM) benefits from low-cost, high-return assets in Guyana and the Permian Basin, with projections indicating that by 2030, these assets will account for 65% of its upstream production, thereby enhancing cash flow and market competitiveness amid oil prices exceeding $100.
- Rising Demand for SLB Technology: SLB (SLB), an energy technology provider, generated $13.3 billion from its Production Systems business last year; despite the Iranian conflict potentially causing a $0.06 to $0.09 decline in EPS, elevated oil prices are expected to boost demand for its technology, driving future performance recovery.
- Stable Growth of Enterprise Products Partners: Enterprise Products Partners (EPD) operates over 50,000 miles of pipelines and 300 million barrels of liquid storage, with 82% of its gross operating margin derived from fee-based contracts, ensuring stability amid oil and gas price fluctuations, while export volumes are projected to reach record highs.
- Market Investment Opportunities: As investors seek exposure to energy stocks, the introduction of fractional shares allows participation in top energy stocks with a minimum investment of $100, reflecting market confidence and expectations for future growth in the energy sector.
See More
ExxonMobil's Competitive Edge in Oil and Gas Market
- Low-Cost, High-Return Assets: ExxonMobil's assets in Guyana and the Permian Basin are characterized by low production costs and high returns, with projections indicating that by 2030, these assets will account for 65% of its upstream production, thereby enhancing the company's stability in a volatile oil and gas market.
- Technology-Driven Efficiency: The company is leveraging technologies such as cube development and lightweight proppants to enhance drilling efficiency and maximize well performance, which is expected to drive cash flow growth, especially as Brent crude oil prices surge past $100.
- Stable Revenue Sources: Enterprise Products Partners operates over 50,000 miles of pipelines and 300 million barrels of liquid storage, ensuring that approximately 82% of its gross operating margin is fee-based and volume-based, significantly reducing its vulnerability to fluctuations in oil and gas prices.
- Impact of Middle East Conflict: The ongoing conflict in Iran poses near-term challenges for both ExxonMobil and SLB, with SLB projecting a decline in earnings per share of $0.06 to $0.09; however, if the situation stabilizes, the demand for SLB's technology could surge, presenting a potential investment opportunity.
See More
ExxonMobil Shares Surge 34% Amid Rising Oil Prices
- Stock Performance: ExxonMobil (XOM) has surged 34% this year, particularly impressive given the S&P 500's 4% decline, indicating strong performance and market confidence in the oil and gas sector.
- Historical Highs: The company's stock recently hit an all-time high of $162.44, and although it closed slightly lower at $161 on Monday, it remains close to its peak, reflecting optimistic investor expectations for future growth.
- Valuation Analysis: ExxonMobil's trailing P/E ratio stands at 24, with a forward P/E of 21, aligning with the S&P 500 averages, suggesting a reasonable valuation that may attract further investor interest.
- Investment Outlook: Despite the volatility risks associated with oil prices, ExxonMobil's 2.6% dividend yield makes it an attractive option for investors, particularly those seeking stable income amid increasing market uncertainties.
See More
ExxonMobil Stock Soars 34% Yet Valuation Remains Reasonable
- Stock Performance: ExxonMobil's shares have surged 34% this year, particularly impressive given the S&P 500's 4% decline, as it approaches its all-time high of $162.44, closing just above $161 on Monday, leading investors to speculate on its future trajectory.
- Valuation Analysis: Despite its strong stock performance, ExxonMobil trades at a trailing P/E of 24 and a forward P/E of 21, aligning with the S&P 500 averages, indicating that its valuation remains reasonable and may attract long-term investors.
- Analyst Expectations: Analysts have recently raised their price targets for ExxonMobil, with the most bullish target set at $186, while the consensus average is just under $149, suggesting an 8% downside risk, although there is still potential for further gains.
- Market Environment: With rising oil prices and geopolitical tensions, ExxonMobil's 2.6% dividend yield appeals to income-seeking investors, and despite the inherent volatility of oil and gas stocks, it is viewed as a solid long-term investment option.
See More
Market Update: Opportunities in Gold and Commodities
- Gold Investment Opportunity: DoubleLine CEO Jeffrey Gundlach indicated a favorable opportunity to invest in gold and commodities at current levels, despite gold futures dropping 16% since the war began, reflecting a strong demand for safe-haven assets in the market.
- Commodity Price Fluctuations: In March, West Texas Intermediate crude futures rose 33% and Brent crude futures increased by 38%, indicating robust demand for energy products, which could drive the performance of related stocks.
- Poor Stock Market Performance: The Nasdaq Composite and S&P 500 indices fell by 3% and 4.3% respectively in March, while the Dow Jones dropped about 5.7%, suggesting weakened investor confidence in stocks, prompting a potential shift towards commodities.
- GameStop and KB Home Reports: GameStop shares rose 7.7% over the past three months but are down 35% from May highs; KB Home shares fell 6.4% in the same period, down 22.5% from September highs, highlighting volatility in the retail and real estate sectors.
See More
Asian Nations Seek Increased U.S. Energy Supply
- Growing Energy Demand: Asian countries like Japan, South Korea, and Taiwan are seeking to increase energy purchases from the U.S. to reduce dependence on Middle Eastern oil and gas exports, particularly as tanker traffic through the Strait of Hormuz has plummeted due to Iranian attacks.
- Stable Supply Strategy: Interior Secretary Doug Burgum highlighted that the Trump administration's energy dominance agenda aims to provide U.S. allies with a stable alternative energy supply, ensuring they do not rely on countries that support war or terrorism.
- Japan's Energy Challenges: Japan's Vice Minister of Economy, Trade and Industry, Takehiko Matsuo, noted that the country relies on the Strait for 90% of its oil imports and prioritizes finding alternative supplies, although the process is challenging, indicating strong anticipation for U.S. energy.
- Alaska's Role: Burgum emphasized that Alaska will play a crucial role in providing secure energy to Asia, with recent oil and gas lease sales and a massive LNG project being prioritized, ensuring energy supply security as exports from Alaska take only eight days to reach Asian allies.
See More
Iran Conflict Drives Spotlight on Energy Stocks
- ExxonMobil's Advantageous Assets: ExxonMobil (XOM) benefits from low-cost, high-return assets in Guyana and the Permian Basin, with projections indicating that by 2030, these assets will account for 65% of its upstream production, thereby enhancing cash flow and market competitiveness amid oil prices exceeding $100.
- Rising Demand for SLB Technology: SLB (SLB), an energy technology provider, generated $13.3 billion from its Production Systems business last year; despite the Iranian conflict potentially causing a $0.06 to $0.09 decline in EPS, elevated oil prices are expected to boost demand for its technology, driving future performance recovery.
- Stable Growth of Enterprise Products Partners: Enterprise Products Partners (EPD) operates over 50,000 miles of pipelines and 300 million barrels of liquid storage, with 82% of its gross operating margin derived from fee-based contracts, ensuring stability amid oil and gas price fluctuations, while export volumes are projected to reach record highs.
- Market Investment Opportunities: As investors seek exposure to energy stocks, the introduction of fractional shares allows participation in top energy stocks with a minimum investment of $100, reflecting market confidence and expectations for future growth in the energy sector.
See More
ExxonMobil's Competitive Edge in Oil and Gas Market
- Low-Cost, High-Return Assets: ExxonMobil's assets in Guyana and the Permian Basin are characterized by low production costs and high returns, with projections indicating that by 2030, these assets will account for 65% of its upstream production, thereby enhancing the company's stability in a volatile oil and gas market.
- Technology-Driven Efficiency: The company is leveraging technologies such as cube development and lightweight proppants to enhance drilling efficiency and maximize well performance, which is expected to drive cash flow growth, especially as Brent crude oil prices surge past $100.
- Stable Revenue Sources: Enterprise Products Partners operates over 50,000 miles of pipelines and 300 million barrels of liquid storage, ensuring that approximately 82% of its gross operating margin is fee-based and volume-based, significantly reducing its vulnerability to fluctuations in oil and gas prices.
- Impact of Middle East Conflict: The ongoing conflict in Iran poses near-term challenges for both ExxonMobil and SLB, with SLB projecting a decline in earnings per share of $0.06 to $0.09; however, if the situation stabilizes, the demand for SLB's technology could surge, presenting a potential investment opportunity.
See More
