2024-04-10 11:30:09 ET
Summary
- Exxon Mobil Corporation stock has outperformed the S&P 500 significantly in Q1, benefiting from a rotation towards energy stocks.
- My Strong Buy thesis has panned out, with favorable demand/supply dynamics benefiting oil majors like Exxon.
- The market has likely priced in higher oil prices for Q2 and beyond, but there are concerns about sustainability and potential resistance at the $100 level.
- I explain why the risk/reward profile is no longer as attractive as it was when the market shunned XOM in early 2024.
- XOM investors who joined the surge late need to brace for impact.
Exxon Mobil Corporation ( XOM ) investors have enjoyed a remarkable revival in Q1, as XOM outperformed the S&P 500 ( SPX ) ( SPY ) significantly. As a result, investors who bought into the pessimism in energy stocks have performed well. The energy sector ( XLE ) has also outperformed in Q1, as the market "quietly" rotated to beaten-down and relatively attractive oil and gas plays. While the market was focused on the AI hype driven by the leading semiconductor and SaaS plays, astute energy investors accumulated their positions....
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For further details see:
Exxon Mobil: Surge Was Too Fast For Its Own Good (Rating Downgrade)