10 Best Low Risk Stocks To Buy in 2025

5. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 104

Equity Beta: 0.63x

Exxon Mobil Corporation (NYSE:XOM) is a global energy company engaged in the exploration, production, refining, and distribution of oil, natural gas, and petrochemical products. It operates through three main segments: Upstream, which focuses on oil and gas exploration and production; Downstream, which includes refining and fuel marketing; and Chemical, which produces petrochemicals used in industrial and consumer products. XOM has operations in multiple regions, supplying energy to transportation, industrial, and residential markets, and invests in carbon capture, hydrogen, and biofuels as part of its long-term energy transition strategy while maintaining a focus on operational efficiency and resource development. The Texas-based company ranked first on our recent list of 11 Best Crude Oil Stocks To Buy Right Now.

Exxon Mobil Corporation (NYSE:XOM) delivered strong financial results in 2024, achieving earnings of $34 billion, their third highest result in a decade despite softer market conditions. The company generated cash flow from operations of $55 billion and delivered a return on capital employed of 13%, with their 5-year average ROCE being an industry-leading 11%. Operationally, the company achieved record performance in their Product Solutions business and reduced methane intensity by more than 60% since 2016. In the Permian Basin, XOM achieved record production from both Heritage ExxonMobil assets and Pioneer assets, projecting production growth from 1.5 million oil-equivalent barrels per day at the end of 2024 to 2.3 million barrels per day by 2030. In Guyana, the company reached record production of 650,000 barrels per day in just 10 years from discovery.

Looking ahead to 2025, Exxon Mobil Corporation (NYSE:XOM) plans to bring online several major projects expected to deliver more than $3 billion in earnings potential in 2026. The company’s long-term outlook includes plans to build an even more advantaged asset portfolio with 60% of Upstream production from advantaged assets by 2030, achieve 80% growth in high-value product sales, and take an additional $6 billion in cost out of the business. Compared to other IOCs over the last 5 years, XOM has grown cash flow from operations at roughly 15% compounded annual growth rate, more than double the closest competitor, and distributed more than $125 billion in dividends and buybacks. With an equity beta of 0.63x, XOM is one of the best low risk stocks to buy in 2025.