Exxonmobil Stock Forecast

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Exxonmobil Stock Forecast

Where Will ExxonMobil Stock Be In One Year?

ExxonMobil is one of the largest oil and gas companies in the world. Normally, ExxonMobil is not regarded as a high-growth stock.

But in the last 12 months, ExxonMobil's stock price has been up by 60% while the S&P 500 has only had 30% gain. The key reason behind the strong performance of ExxonMobil is the higher oil prices.

ExxonMobil Benefits From Higher Oil Prices

ExxonMobil is running its operations in 56 countries and is involved in pretty much everything. This includes upstream exploration, production, and even downstream refining. In fact, ExxonMobil is also involved in the marketing of oil & gas products, which makes it a very big player.

They get most of the oil from the USA, mainly from the Permian Basin. But, the ExxonMobil is also expanding into projects in the Gulf of Mexico.

ExxonMobil is also growing its presence in Canada, Latin America, the Middle East, Africa, and Asia. Out of these, almost 20% of ExxonMobil's oil and gas is coming from the Middle East region.

Whenever oil prices go through a boom, it leads to higher upstream profits for ExxonMobil. Also, the diversification and scale of ExxonMobil allow it to absorb the higher input costs.

During 2021-2025, the EPS of ExxonMobil increased at a 6% CAGR. And for the 2025-2028 period, analysts think the EPS will jump to 14% CAGR.

The company is also trying to expand into the LNG and other low-carbon businesses. This means ExxonMobil is set to gradually lower its dependency on crude oil.

Based on ExxonMobil's stock price, its valuation looks very reasonable, and the company has also raised its payout every year for the last 43 years.

With all things considered, analysts think that ExxonMobil's stock price can easily jump by 10% in the next 12 months. This is based on the idea that oil prices will remain elevated throughout the year.

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