10 Most Profitable Energy Stocks To Invest In

1. ExxonMobil (NYSE:XOM)  

TTM Net Income: $34.16 Billion  

5-Year Net Income CAGR: 14.03%  

Number of Hedge Fund Holders: 92  

ExxonMobil (NYSE:XOM) is one of the largest and most prominent publicly traded oil and gas companies in the world, boasting a vast and diversified portfolio of operations that encompass a wide range of critical energy-related activities, from exploration and production to the refining and manufacturing of petroleum products and a diverse portfolio of upstream, downstream, and chemical businesses. ExxonMobil (NYSE:XOM) has been making strategic investments in low-carbon technologies, including biofuels, carbon capture, and hydrogen while maintaining its leadership in the traditional oil and gas sector.

On May 3, ExxonMobil (NYSE:XOM) completed the acquisition of Pioneer Natural Resources (NYSE:PXD) for $60 billion. The acquisition is expected to significantly boost Exxon Mobil’s oil and gas production, enhance operational efficiency, and create synergies across various businesses. The company’s updated revenue structure reflects the increased contribution from the Upstream segment, which is expected to account for 10.5% of total revenue in 2024 and 11.5% in 2025. ExxonMobil’s (NYSE:XOM) EBITDA is expected to increase by 8% in 2024 and 7% in 2025, driven by the higher forecast for the Upstream segment’s revenue.

ExxonMobil (NYSE:XOM) is a compelling investment opportunity in the energy sector. The company’s ability to adapt to changing market conditions and its commitment to invest in its businesses position it for long-term success. As of June 30, the company’s stock was held by 92 hedge funds with stakes worth $6.18 billion.

While we acknowledge the potential of Exxon Mobil (NYSE:XOM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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