Top 5 Oil and Gas Stocks to Invest In

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 83

Exxon Mobil Corporation (NYSE:XOM) is the number one on the list of top oil and gas stocks to invest in. It is the largest non-government-owned energy company in the world and produces around 3% of the world’s oil.

On June 7, Evercore ISI analyst Stephen Richardson upgraded Exxon Mobil to Outperform rating and raised the price target to $120 from $88. Richardson believes that the company’s current valuation is at a greater than 20% discount to historical levels at a time where returns are also expected to rise significantly. 

The analyst sees the company’s long-term earnings increase to be driven by upstream upgrading and cost reductions. He noted that ExxonMobil will likely have an industry-leading Return On Capital Employed (ROCE) target of 15% by 2025 and 17% by the year 2027. 

Exxon Mobil Corporation is one of the most reliable dividend payers in the world. It has been consecutively growing its dividend payouts over 38 years and has an annual dividend yield of 3.88% as of June 28. The strong fundamentals, profitability and dividend history make it one of the top oil and gas stocks to invest in. 

Saturna Capital mentioned Exxon Mobil in their Q4 2021 investor letter. Here’s what the investment firm believes about the company:

“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”

You can also take a peek at Analysts Just Turned Bullish on These 10 Stocks and 10 Cheap Dividend Stocks with Over 6% Yield

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