1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Forward Price to Earnings (P/E) Ratio: 14.03
Exxon Mobil Corporation (NYSE:XOM) is a leading global energy company that operates across refining, exploration, and emerging low-carbon technologies. The company is continuously developing decarbonized power solutions for data centers, with its first site projected to be operational by 2028. Exxon Mobil considers its CCS storage network, integrated carbon capture, and transport a key competitive advantage in industrial decarbonization.
Exxon Mobil Corporation (NYSE:XOM) achieved its third-strongest performance in a decade by reporting $34 billion in earnings for 2024, despite challenging market conditions. The company generated $55 billion in operational cash flow, fueled by strong results from both the Upstream and Product Solutions segments. For the fourth quarter ended December 31, 2024, Exxon reported earnings per share of $1.67, slightly below the expected $1.77.
Furthermore, Exxon Mobil Corporation (NYSE:XOM) achieved record production levels in both the Permian Basin and Guyana operations. Permian production is forecasted to grow significantly from 1.5 million barrels per day in 2024 to 2.3 million by 2030. The company is also making progress with four CCS projects scheduled to begin operations within the next 2 years. In addition, Exxon Mobil Corporation (NYSE:XOM) anticipates that its low-carbon business segments, including CCS, lithium, and hydrogen, will contribute $2 billion to earnings growth through 2030. Backing this strategy, the U.S. Department of Energy recently confirmed a $225 million grant to Standard Lithium and Equinor for the Southwest Arkansas lithium project, which aims to generate 45,000 tons of lithium carbonate annually.
Moving forward, Exxon Mobil has a robust pipeline of major projects, including the China Chemical Complex and the Singapore Resid Upgrade, set to launch in 2025. Despite current market challenges, these initiatives are projected to deliver $3 billion in earnings potential by 2026. As an undervalued lithium stock, Exxon Mobil Corporation (NYSE:XOM) is maintaining its leadership in traditional energy operations while balancing its investments in low-carbon technologies.
Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of Undervalued Lithium Stocks to Invest In. While we acknowledge the potential of XOM, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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