Jim Cramer’s Exclusive List: 10 Stocks to Monitor Closely

6. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Investors: 92

Jim Cramer believes that Devon Energy (NYSE:DVN) is a more affordable option compared to Exxon Mobil Corporation (NYSE:XOM) and Chevron Corp. (NYSE:CVX). He finds Exxon Mobil Corporation (NYSE:XOM)’s dividend yield to be low, and Chevron Corp. (NYSE:CVX)’s is only slightly better. Cramer doesn’t consider this a favorable time to invest in oil companies, as demand has been weak and prices are declining.

“Devon is actually cheaper than Exxon Mobil Corporation. Exxon is expensive, with only a 3.4% yield. It’s not much better than Chevron, which yields 4.7%. It’s not a good time to own oil. Demand was never there, and prices are finally falling.”

The positive outlook for Exxon Mobil Corporation (NYSE:XOM) is based on its strong financial performance, strategic investments, and growth in production and low-carbon initiatives. In Q2 2024, Exxon Mobil Corporation (NYSE:XOM) earned $9.2 billion, or $2.14 per share, and generated $10.6 billion in cash flow from operations. It returned $9.5 billion to shareholders through dividends and share buybacks. Exxon Mobil Corporation (NYSE:XOM) also achieved a 15% increase in production, driven by record outputs from its Permian, Guyana, and Pioneer operations.

The acquisition of Pioneer Natural Resources (NYSE:PXD) further strengthens its position in high-return unconventional resources. Exxon Mobil Corporation (NYSE:XOM) is also making strides in the energy transition with investments in low-carbon technologies. Notable projects include a partnership with ADNOC to develop the world’s largest low-carbon hydrogen facility, and efforts in renewable energy storage and carbon capture.

Exxon Mobil Corporation (NYSE:XOM) is also expanding into innovative materials like Proxxima™ resin and carbon fiber applications. Bottomline, Exxon Mobil Corporation (NYSE:XOM)’s strong financials, growing production capabilities, and commitment to low-carbon solutions position it well for continued success and value creation in both traditional and emerging energy markets.