Exxon Mobil is Currently a Growth Stock at Value Pricing

Exxon Mobil Corporation (NYSE:XOM) is the biggest company in the major integrated oil and gas industry, and today we want to highlight why the stock should be a candidate for portfolios.  As investors, stocks are attractive if they are 1) growth stocks, 2) have strong sales and 3) are reasonably priced.  Exxon Mobil fits that bill.

Exxon Mobil is projected to have an EPS growth next year of 22.4%, making the grade for being a growth stock.  It has a forward P/E of 11.2 which does not make the stock as cheap as some of its peers since BP is at 8.5 and Chevron is at 9.2, but it is more attractive than the general market with the S&P500 at 14.7.  It prices to sales is also at attractive 1.0 as compared to the S&P500 at 1.4, demonstrating it has some strong sales.

Checking the chart for XOM, we see that the stock price of $65.79 is currently sitting just above a healthy price support level of $64.  After the sharp December and January sell-offs, this might be the best time to pick up some shares of Exxon Mobil for your portfolio and then watch for it to regain ground back toward the $75 level.  Remember, the mantra is “buy low, sell high.”  Exxon is a massive company that offers stability and dividend yield of 2.5%.

Exxon Mobil Corporation is the major company engaging in the exploration, production, transportation, and sale of crude oil and natural gas.  The company also engages in the manufacture of petroleum products, and transportation and sale of crude oil, natural gas, and petroleum products.

Disclosure: Long position in XOM through ownership of shares in ProShares Ultra S&P500 (ETF) (NYSE:SSO).