Current price – $112.2
Target price – $132
Growth potential – 17.6% 🔥
Dividend yield – 3.42%💵
Investment horizon – 1 year
Exxon Mobil is an American oil and gas company, one of the largest in the world. The company's shares have increased by 12.4% since the beginning of the year, which is a strong performance for a company outside the technology sector. Exxon Mobil demonstrates confident free cash flow dynamics and offers an attractive dividend yield. The fair value of the company's shares is $132, with an upside of 17.6%.
Investment thesis
🔼 OPEC has extended production restrictions. The Organization of the Petroleum Exporting Countries (OPEC) last week maintained the current quotas for the countries participating in the cartel and those that have joined the agreement. The extension of restrictions will support oil prices, which significantly affect the revenue of the oil and gas sector in general and Exxon Mobil in particular.
🔼 The American economy is feeling confident. The recent labour market report showed that the U.S. economy is in good shape. This allows for expectations of strong demand for energy resources.
🔼 Dividends and buyback. The high level of cash flow allows Exxon Mobil to regularly share profits with shareholders through dividends and share buybacks. The company offers a fairly attractive dividend yield of 3.42%. Additionally, in Q1 2024, it spent $3 bln on buybacks and has an approved plan to repurchase another $20 bln.
🔽 Risks. The key risk for Exxon Mobil shares is oil prices, which can decrease for various reasons.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
‼ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services. No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments. The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
Unibank” OJSC is regulated by the Central Bank of Armenia.
#investidea
Target price – $132
Growth potential – 17.6% 🔥
Dividend yield – 3.42%💵
Investment horizon – 1 year
Exxon Mobil is an American oil and gas company, one of the largest in the world. The company's shares have increased by 12.4% since the beginning of the year, which is a strong performance for a company outside the technology sector. Exxon Mobil demonstrates confident free cash flow dynamics and offers an attractive dividend yield. The fair value of the company's shares is $132, with an upside of 17.6%.
Investment thesis
🔼 OPEC has extended production restrictions. The Organization of the Petroleum Exporting Countries (OPEC) last week maintained the current quotas for the countries participating in the cartel and those that have joined the agreement. The extension of restrictions will support oil prices, which significantly affect the revenue of the oil and gas sector in general and Exxon Mobil in particular.
🔼 The American economy is feeling confident. The recent labour market report showed that the U.S. economy is in good shape. This allows for expectations of strong demand for energy resources.
🔼 Dividends and buyback. The high level of cash flow allows Exxon Mobil to regularly share profits with shareholders through dividends and share buybacks. The company offers a fairly attractive dividend yield of 3.42%. Additionally, in Q1 2024, it spent $3 bln on buybacks and has an approved plan to repurchase another $20 bln.
🔽 Risks. The key risk for Exxon Mobil shares is oil prices, which can decrease for various reasons.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
‼ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services. No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments. The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
Unibank” OJSC is regulated by the Central Bank of Armenia.
#investidea
