5 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility

2. Exxon Mobil Corporation (NYSE: XOM)

Number of Hedge Fund Holders: 65  

Exxon Mobil Corporation (NYSE: XOM) is an energy firm that explores for and produces oil and natural gas. It is ranked second on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have returned 44% to investors in the past year. 

On July 2, Exxon Mobil Corporation (NYSE: XOM) CEO Darren Woods made a statement backing a new carbon tax that he said was essential to reach net zero emissions in the fight against climate change. 

At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Exxon Mobil Corporation (NYSE: XOM), up from 63 in the preceding quarter worth $2.2 billion. 

In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE: XOM) was one of them. Here is what the fund said:

“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”