12 Undervalued Wide Moat Stocks to Buy According to Analysts

8) Exxon Mobil Corporation (NYSE:XOM)

Average Upside Potential: ~15.7%

Forward P/E as of February 28: ~14.06x

Number of Hedge Fund Holders: 104

Exxon Mobil Corporation (NYSE:XOM) is engaged in the exploration and production of crude oil and natural gas. The company has a wide economic moat, thanks to its strategic assets. This is further strengthened by its scale, technological capabilities, and integration. Jason Gabelman, an analyst from TD Cowen, maintained a “Buy” rating on the company’s stock with the same price target of $128.00. The analyst’s rating is backed by factors such as Exxon Mobil Corporation (NYSE:XOM)’s substantial line-up of projects scheduled to commence in the coming years. These are expected to fuel its earnings.

Furthermore, Exxon Mobil Corporation (NYSE:XOM)’s strategic efforts in upgrading its portfolio while, at the same time, managing the capital expenditures effectively with the help of technology-driven efficiencies and a robust project organization continue to support its financial health. Exxon Mobil Corporation (NYSE:XOM)’s significant resources, technological expertise, and global reach place it well to capitalize on emerging opportunities in areas including carbon capture and storage, biofuels, and hydrogen production. This can diversify the company’s revenue streams, mitigate risks related to the energy transition, and potentially open new growth avenues aligning with broader decarbonization efforts.