Slumping oil prices have beaten up this Top Pick stock, and Russ Kaplan of Heartland Adviser thinks the pummeling is overdone, especially considering Exxon-Mobile’s track record.
Exxon-Mobil (XOM)
from Heartland Advisor
At the present time, one of the worst performing stocks of the Stock Market is Exxon-Mobil (XOM). Oil is trading is at its lowest level in five years and all oil stocks have been battered down due to OPEC’S (the oil producing countries in the Middle East) high oil production levels.
I think the Market’s reaction to the plunge in oil prices is exaggerated. Exxon-Mobil is one of the best of the blue chip stocks in the energy sector and it should easily withstand a lower oil price. In fact, I bought my first shares of Exxon in 1981,when the price of oil was considerably less than it is today.
Exxon has been in business since 1870 when it only consisted of Rockefeller’s Standard Oil. It has adapted to fluctuating oil prices and all other changes in the industry since then. It is now a diversified company producing oil, natural gas and, with its eyes on the future, is currently involved in the development of alternative energy.
In addition to being a solid company Exxon-Mobil pays a dividend of over 3%, which has been raised six times since 2010.
Russ Kaplan, Heartland Adviser, 402-614-1321, January 6,
2015