Its dividend and appreciation have been pretty good.
Peace,
2007-03-26 06:29:24 · 10 answers · asked by George 3 in Business & Finance ➔ Personal Finance
Personally, I wouldn't recommend it. There really is nothing special about it.
It's trading at a P/E of around 11, which isn't terrible, but it isn't the value of the century either.
It's dividend comes in at under 2% which is only OK. The only good thing that I have to say about Exxon Mobil is that it has a decent amount of cash and not a lot of debt.
If you were set on investing in oil stocks, I'd opt for BP or Chevron. BP is lacking in cash and has about 4 times as much debt as it does cash, but its P/E ratio is still in single digits and it pays a better dividend than XOM (BP pays about 4%). I think it would be a better deal if it didn't have so much debt, but I would still buy it over Exxon Mobil.
I think Chevron is a better deal than both of them. Dividends are around 3% and the P/E ratio is still in single digits. It has enough cash to pay off its debts (but still only has about 50% of the cash as XOM). However, Chevron has a book value per share of about 31 or roughly 50% of the stocks price. This beats Exxon Mobil by a large margin and BP by almost $8 a share.
If I had to invest in oil, I'd go Chevron. It still isn't the deal of the year, but I think it is much better priced than Exxon. If you already hold Exxon Mobil, I'd probably hang onto it until the high oil and gas prices sputter out. I think once (and if) cheap oil hits the market again, you'll see the prices fall fast.
Personally, I'd look toward coal if you are looking for a Natural Resouce stock to get into. There are over 100 coal power plants in the planning stages right now. Even if only half of them get built, it will generate a huge surge in demand for coal. What few coal companies that are out there already have impressive sheets. I'd only expect their positions to get better.
2007-03-26 07:43:32 · answer #1 · answered by Slider728 6 · 1⤊ 0⤋
Just looking at the financial statements will show you that their net income and total equity have increased each year for the last 5 years. Their net profit margin has increased steadily over the last 5 years as well.
If a company shows strong financial statements with steady growth, it will be a buy rating by most analysts.
In addition to this, it has a beta (how volatile the stock will be) averaging .75. This means that for every dollar change in the S&P, it will only change 75 cents. Another indicator of a safe stock to hold onto.
Ron, ChFC
2007-03-26 06:53:36 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Because their profits are so high. After gas prices escalated during the fall of 2005 when the hurricane hit and stifled the supply for a couple of months, Exxon reported above normal profits. Because gas prices have continued to skyrocket they are sitting pretty.
2007-03-26 06:33:49 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I have had XOM for over 20 years and have been pleased with the performance. You must understand Exxon is mainly in the distribution business, any oil alternatives will still have to be created, shipped, stored and sold. Exxon will still make money.
2007-03-26 06:51:36 · answer #4 · answered by Anonymous · 1⤊ 0⤋
There isn't any assured gains within the inventory marketplace it doesn't matter what method or ideas used be it technical evaluation or basics. The inventory marketplace is subjected to plenty of variables and particularly to a retail investor or dealer there is not any warranty to show their cash into gains. Strategies and systems used within the inventory marketplace is headquartered at the excellent and viable method by way of contributors or associations to maximise gains and mitigate losses.
2016-09-05 16:41:42 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Because until the day we no longer rely on fossil fuels to dominate our society, and that will still be for a very long time yet, then I would say yes because they will continue to make billions.
2007-03-26 06:32:46 · answer #6 · answered by Ted 6 · 1⤊ 0⤋
F*** Exxon, they still haven't fully cleaned up the oil from the Valdeze!
2007-03-26 06:33:55 · answer #7 · answered by Anonymous · 0⤊ 2⤋
because they don't give one whit about the environment, spent relatively nothing to clean up the Valdez spill, and so don't have the cost outlay for such expenses.
2007-03-26 06:32:38 · answer #8 · answered by Anonymous · 0⤊ 2⤋
Because they are very profitable.
2007-03-26 07:10:00 · answer #9 · answered by derek 4 · 1⤊ 0⤋
since it is giving high yield
2007-03-26 06:31:39 · answer #10 · answered by siva k 2 · 0⤊ 1⤋