Here is Why Exxon Mobil (XOM) is a Favorite Among Hedge Fund Investors

Exxon Mobil Corporation (NYSE:XOM)’s vast global scale, strong balance sheet, strict financial discipline, generous payouts, and aggressive growth put it the among the Best Crude Oil Stocks to Buy According to Hedge Funds.

Exxon Mobil Corporation (NYSE:XOM) has grown its earnings at an annual rate of roughly 30% over the last five years, with its cash flow also rising at a CAGR of roughly 15% during the period. The oil behemoth has no intentions of slowing down and expects to achieve $20 billion in earnings growth and $30 billion in cash flow growth by 2030, even if Brent prices average just $65 per barrel.

Exxon Mobil Corporation (NYSE:XOM) also remains focused on reducing costs to make sure it can weather a shifting crude oil market. Since 2019, the company has achieved $12.1 billion in structural cost savings, with a target to raise this number to $18 billion by 2030. Moreover, Exxon continues to invest in efficiency, with a goal of achieving a break-even of $35 per barrel by 2027 and $30 per barrel by 2030.

Exxon Mobil Corporation (NYSE:XOM) is famous for its massive payouts, with distributions of over $125 billion in dividends and buybacks over the last five years. The company has announced plans to repurchase $20 billion in shares annually through 2026, and has raised its payouts for 42 consecutive years.

Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities or markets products around the globe and explores for oil and natural gas on six continents.

While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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