Exxon-Mobile- A Buy, Sell, Or Hold?

Exxon Mobile Corporation (XOM) could be the closest thing to a state-owned oil company in the United States. Almost all companies in the energy patch lagged the overall stock market over the past few years. XOM shares have been no exception…

At just over $41 per share at the end of last week, XOM’s market cap was just below the $174 billion level. At the same time, Apple (AAPL) reached the $2.127 trillion mark. The technology company has more cash than the total market capitalization of XOM.

Exxon Mobile explores for and produces crude oil and natural gas in the United States, Canada, and worldwide. The company operates through three segments, Upstream, Downstream, and Chemicals. As of the end of 2019, XOM had over 23,800 wells with proven reserves of 22.4 billion barrels of crude oil. XOM also produces raw materials such as polypropylene and isopropyl alcohol for medical masks, gowns, and hand sanitizer. The company’s headquarters are in Irving, Texas, and has been around since 1870.

The current state of the global economic landscape could make XOM shares a bargain at the $41 level. However, the potential for political change in the United States could be weighing on the price of the stock.

Energy Stocks Offer Value in a Bullish Stock Market

The stock market made a V-shaped recovery since the March lows when share prices plunged on the back of the global pandemic.

The chart of the S&P 500 index shows that it fell from a record high of 3,393.52 on February 19 to a low of 2,191.86 on March 23, a drop of 35.4% in a little over one month. Last week, the index traded to a high of 3,399.96, a new record high. The index closed last week at just below the high. The tech-heavy NASDAQ has done even better than the S&P 500 since late March.

After reaching a record peak at 9,838.37 on February 19, the NASDAQ index fell by 32.6% to 6,631.42 on March 23. On June 5, the NASDAQ surpassed the mid-February high, and it kept on going. The most recent high at 11,326.21 last week was 70.8% above the late March low. The NASDAQ was trading at over 11,310 at the end of last week.

Meanwhile, energy-related stocks have lagged the overall stock market.

XOM- A Top Holding in the XLE and VDE

The S&P 500 Energy Sector SPDR (XLE) traded to a high of $55.40 on February 20. The ETF was nowhere near its record high, which was at…

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