8 Most Profitable Oil Stocks To Invest In

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1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Funds Holders: 86

5-Year Net Income CAGR: 18.13%

TTM Net Income: $33.70 Billion

Exxon Mobil Corporation (NYSE:XOM) is one of the largest international energy and petrochemical companies in the world. The company is primarily focused on exploration, production, refining, manufacturing, and activities across its upstream, downstream, and chemical segments. The company operates in over 60 countries.

Exxon Mobil Corporation (NYSE:XOM) has improved its earnings over the years. Since 2019, the company’s earnings per barrel in the upstream business have doubled. During Q3 2024, the company reported earnings of $8.6 billion while cash flow from operating activities was $17.6 billion, and free cash flow was $11.3 billion. Two of the company’s premier assets include Guyana and Permian. During Q3, advantaged asset volume growth from record Guyana, heritage Permian and Pioneer production added $1.5 billion to earnings. A record production of over 1.4 million oil-equivalent barrels at Permian was reported during the quarter.

Exxon Mobil Corporation (NYSE:XOM) is one of the oil companies looked upon ahead of Trump’s second term. President-elect Trump will be friendlier to traditional oil and gas production, which would benefit oil drillers and natural gas and oil service providers. XOM also remains one of the top dividend stocks, with a consecutive 26-year history of dividend growth.

While we acknowledge the potential of Exxon Mobil Corporation (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 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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