Caterpillar Inc. (CAT), Alcoa Inc (AA): If You Owned These Dow Stocks, You’re Not Happy About 2013

For Exxon Mobil Corporation (NYSE:XOM), the challenge lately has been keeping its production levels up. Although Exxon Mobil Corporation (NYSE:XOM) has done a good job of replacing its production by adding new reserves — posting a 115% reserve replacement ratio in 2012 — it projects that it will have to spend a whopping $190 billion on capital projects over the next five years to find new opportunities. That’s a big gamble, given the increasing cost involved in using unconventional production methods and the ever-present volatility in energy prices.

Can these companies rebound?
Of these four companies, Caterpillar Inc. (NYSE:CAT) appears to be in the best position to turn things around. The company has extensive exposure to the U.S., and everyone knows that American infrastructure is in dire need of repair and improvement. If the U.S. economy keeps leading the world higher, then Caterpillar is best positioned to take advantage and reverse its losses.

The article If You Owned These Dow Stocks, You’re Not Happy About 2013 originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of IBM.

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