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Here's Why ExxonMobil (XOM) is an Attractive Investment Bet

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Exxon Mobil Corporation (XOM - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. So far this year, the stock, carrying a Zacks Rank #2 (Buy), has gained 59.6% compared with a 41.2% improvement of the composite stocks belonging to the industry.

Zacks Investment Research
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What’s Favoring the Stock?

West Texas Intermediate crude price, trading at more than $110 per barrel, has increased drastically in the past year. The sharp rise in oil price can be hitched to the assumptions by many analysts that the Ukraine war may be prolonged. 

The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. Also, ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. ExxonMobil has a huge inventory of well locations in the Permian that has brightened its production outlook. In offshore Guyana, ExxonMobil made several discoveries which XOM estimated at nearly 11 billion oil-equivalent barrels of recoverable resource.

Like upstream businesses, ExxonMobil also benefits from its downstream and chemical operations. Improving refining margins from the United States and non-U.S. operations and higher margins from the chemical businesses are aiding XOM’s bottom line.

ExxonMobil has increased its stock repurchase program from $10 billion to $30 billion. The energy giant has planned to execute the repurchase program through next year. This reflects ExxonMobil’s strong focus on returning capital back to shareholders.

Other Stocks to Consider

Some other top-ranked players in the energy space are ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips carries a Zacks Rank #2 (Buy), while Marathon Oil and Occidental Petroleum sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, ConocoPhillips is likely to see an earnings growth of 141.6%.

Marathon Oil is a leading oil and natural gas exploration and production company. MRO witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Marathon Oil is likely to see an earnings growth of 201.3%.

In the United States, Occidental Petroleum is among the largest oil producers. OXY witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Occidental Petroleum is likely to see an earnings growth of 278.8%.

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