Top Energy Pick: Exxon Mobil

Although it’s likely that oil prices will stay low for a considerable period, that does not mean you should avoid the sector altogether. In fact, now is the time to acquire top-quality companies at bargain prices, provided you have the time horizon to wait for the inevitable turnaround and a tolerance for volatility. Here is a company I especially like right now and we’re adding it to the IWB Recommended List.

Exxon Mobil Corporation (XOM). XOM is an excellent stock to hold in a declining oil price environment due to its diversified business base. While lower oil prices may negatively affect the operations of its upstream business, the operations of its downstream refining and chemicals businesses benefit from low prices, offsetting the impact. Furthermore, given the long-term nature of most of its operations, XOM is prepared for price fluctuations and does not undertake a new venture without anticipating and testing a variety of different economic and price scenarios in order to ensure a favorable return.

Source: Guru Focus

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