We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
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: 92
Cramer mentioned the love surrounding Exxon Mobil Corporation’s (NYSE:XOM) stock presently and the kerfuffle around Chevron’s acquisition of Hess Corporation. Here’s what he said:
“Finally, we hear from two biggest, biggest oil companies, Chevron and Exxon… If not for that battle with Exxon for the Hess acquisition, I think the stock could be quite a bit higher because of its great conventional flow. Exxon doesn’t have the earnings power that Chevron has, but it’s got a lot more love right now.”
Exxon (NYSE:XOM) is engaged in the exploration and production of crude oil and natural gas. Currently, the company is involved in a significant legal dispute concerning Chevron’s proposed $53 billion acquisition of Hess, centered around whether the merger would constitute a change of control over Hess’s valuable subsidiary in Guyana, an area critical to both companies due to its substantial oil reserves.
The company contends that the right of first refusal was triggered by the potential change of control. Although the U.S. Federal Trade Commission recently permitted Chevron’s purchase of Hess, Exxon’s challenge to the merger is expected to unfold over the coming months, with a three-judge arbitration panel set to review the case in May.
In the most recent quarter, Exxon (NYSE:XOM) reported positive financial results stemming from its merger with Pioneer, which contributed $500 million in earnings. The company also highlighted a strong financial performance, with free cash flow amounting to $4.9 billion in the second quarter of 2024, bringing the total free cash flow for the first half of the year to $15 billion.
Overall XOM ranks 10th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
