5 Best Stocks to Buy for Deflation

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 72

The energy sector is one of the best defensive plays for periods of economic uncertainty, which is why Exxon Mobil Corporation (NYSE:XOM) is a premier stock to buy for deflation. The company has increased its annual dividend payment to shareholders for 39 consecutive years. Exxon Mobil Corporation (NYSE:XOM)’s last dividend of $0.88 per share quarterly dividend was distributed on September 9. The stock yielded 4.10% on September 23. 

Piper Sandler analyst Ryan Todd on September 12 maintained an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) and lowered the price target on the stock to $108 from $109, citing near-record distillate margins in the integrated oils group, which will continue to drive upside to refining estimates through the winter and into an “equally tight” 2023. 

According to Insider Monkey’s data, 72 hedge funds were long Exxon Mobil Corporation (NYSE:XOM) at the end of the second quarter of 2022, compared to 83 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is a prominent stakeholder of the company, with approximately 20 million shares worth $1.70 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

You can also take a look at 10 Monthly Dividend Stocks with Highest Yields and 10 Best Consumer Discretionary Stocks To Buy.

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