Billionaire Ray Dalio’s Top 5 Energy Stock Picks

1. Exxon Mobil Corporation (NYSE:XOM)

Bridgewater Associates’ Stake Value: $99,312,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.50%

On October 28, Exxon Mobil Corporation (NYSE:XOM) posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $4.45 and outperformed expectations by $0.64. The company’s revenue for the quarter amounted to $112.07 billion, up 51.89% year over year, and ahead of Wall Street consensus by $7.31 billion. As of November 11, Exxon Mobil Corporation (NYSE:XOM) has gained 79.34% year to date.

Exxon Mobil Corporation (NYSE:XOM) has a strong cash position. Moreover, the company is profitable and efficient at making profits for shareholders. According to the company’s balance sheet, Exxon Mobil Corporation (NYSE:XOM) has free cash flows of $59.58 billion, a trailing twelve-month operating margin of 16.07%, and an ROE of 29.73%. The company also has low debt levels and has a debt-to-equity ratio of 0.24. As of September 30, Ray Dalio’s Bridgewater Associates has a position worth $99.3 million in the company, and the investment covers 0.50% of his 13F portfolio. Exxon Mobil Corporation (NYSE:XOM) is ranked among Ray Dalio’s top energy stock picks.

Wall Street sees material upside to Exxon Mobil Corporation (NYSE:XOM). This October, Truist analyst Neal Dingmann raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $114 from $111 and maintained a Hold rating on the shares. On November 11, Piper Sandler analyst Ryan Todd raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $131 from $113 and reiterated an Overweight rating on the shares.

Here is what First Eagle Investments had to say about Exxon Mobil Corporation (NYSE:XOM) in its second-quarter 2022 investor letter:

“Integrated oil and gas giant Exxon Mobil 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 industrywide 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.”

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