Personally I think Exxon is a fantastic stock to invest in, solid earnings, revenue, and dividends. It is very attractive just from these simple measures of a company. It is also way undervalued in my opinion. It trades at a measly 12.68 P/E ratio very low for its sector and for any stock. I would still buy it at 15 P/E ratio. Lots of room for upside and should go up as people realize that it is undervalued. It has a 19.67% return on equity compared to 13.98% for the S&P 500. It has a market capitalization of 424 billion but its revenue each year are 422 billion.
It provides a good that almost every human on the planet uses every single day in some way. And it is the top provider of that good. It might have some competition from alternative energy sources but I have faith in that management that they will move into other energy sectors and stay on top of their game. If not then the company deserves to be thrown under the bus and go the way of other companies unwilling to change.
I see Exxon trading at 125-130 very soon and it might even be this year. It should at least trade at that level if trends continue. And it would probably still be a great buy at 130. At 150 it is too expensive. So get out there and find an undervalued stock like Exxon and invest. Happy trading.
Disclosure: I have family members who own Exxon, I do not owen Exxon nor do I plan to open a position in Exxon.
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