We recently compiled a list of the 10 Best Spring Stocks To Buy Now. In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against the other spring stocks.
Spring is upon the United States stock market yet again. During this time, a particular set of stocks, mostly concentrated in the energy and financial sector, tend to outperform their peers. This performance is influenced by a combination of seasonal patterns, economic cycles, and investor behaviors. For example, seasonal demand plays a significant role in the energy sector performance. As winter ends, the demand for heating oil decreases, but this is often offset by preparations for the summer driving season. Refineries ramp up production of gasoline to meet the anticipated increase in travel during the warmer months. This transition can lead to higher crude oil prices and, consequently, bolster the performance of energy stocks.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, the financial sector’s performance in spring is closely tied to economic activity. Spring often brings increased consumer spending, as individuals receive tax refunds and engage in activities such as home buying and renovations. This uptick in spending can lead to higher loan demand and increased transaction volumes for banks and financial institutions, thereby boosting their revenues. Additionally, businesses often finalize budgets and initiate new projects in the spring, leading to increased demand for corporate financing and advisory services. Investment banks may see a rise in deal-making activities, mergers, and acquisitions during this period, contributing to improved performance in the financial sector.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies in the following list of the best spring stocks to buy now are gathered from the finance and energy sectors, traditionally the strongest performing sectors during the spring, and then ranked based on hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of a major oil rig in the middle of the sea, pumping crude oil.
Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) operates as an integrated oil and gas company. In earnings for the fourth quarter of 2024, the company reported earnings of $7.6 billion, or $1.72 per share (assuming dilution), with cash flow from operating activities of $12.2 billion and free cash flow of $8 billion, which signals strong profitability and solid cash generation. Darren Woods, the CEO of the firm, highlighted recently that his firm had achieved earnings of $34 billion in 2024, marking its third-highest result in the past decade despite softer market conditions. Woods emphasized significant growth in Guyana, where production reached a record 650,000 barrels per day. He reiterated that production is expected to grow to 2.3 million barrels per day by 2030, supported by 40 reservoirs.
Overall XOM ranks 6th on our list of the best spring stocks to buy. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a 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.
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Disclosure: None. This article was originally published at Insider Monkey.
