COM - Exxon Mobil: Cheap At An 11x Multiple Bigger Buybacks Possible In 2H
2024-06-16 13:39:28 ET
Summary
- WTI crude oil remains in the upper $70s, performing well last week despite macro challenges.
- Energy sector stocks continue to struggle compared to tech-related stocks, with XLE hitting 26-month relative lows versus the S&P 500.
- I have a buy recommendation on ExxonMobil (XOM) due to an attractive valuation, its strong free cash flow, and the potential for shareholder-friendly initiatives following the acquisition of Pioneer.
- Ahead of earnings next month, I outline key price levels to monitor.
WTI crude oil posted its best weekly performance in two months last week despite softer US inflation data, a strong US dollar, and a dismal performance from ex-US equities. While oil supply concerns remain apparent, both WTI and Brent have managed to hold the mid to high $70s per barrel. ...
Exxon Mobil: Cheap At An 11x Multiple, Bigger Buybacks Possible In 2H