2024-06-17 08:30:00 ET
Summary
- My caution on Exxon Mobil in April was timed to perfection, as XOM stock has underperformed the S&P 500 since then.
- Energy investors were too optimistic about oil prices staying higher for longer back then.
- With oil prices potentially bottoming out, XOM's recovery thesis should be bolstered.
- Exxon's closure of Pioneer Natural Resources should bolster the visibility of improved production capacity, improving its earnings outlook.
- I argue why XOM's bottom is increasingly close, suggesting it's time to consider increasing exposure.
I urged Exxon Mobil Corporation ( XOM ) investors to be cautious about XOM's surge toward its April 2024 highs. In my previous XOM article in early April, I highlighted why XOM stock's rally was too fast for its own good. I have confidence in Exxon's fundamentally strong business model as a leading oil major. However, I assessed that the market was too optimistic about oil prices staying higher for longer, raising the risks of impact from unforeseen downside volatility....
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For further details see:
Exxon Mobil: Buy Weakness, Wait Patiently, And Don't Hurry (Rating Upgrade)