5 Best Stocks to Buy According to Chris James’ Engine No. 1

4. Exxon Mobil Corporation (NYSE: XOM)

James’ Stake Value: $51,218,000
Percentage of Chris James’ 13F Portfolio: 18.8%
Number of Hedge Fund Holders: 65

Exxon Mobil Corporation (NYSE: XOM) ranks 4th on the list of 10 best stocks to buy according to Chris James’ Engine No. 1. Exxon Mobil Corporation is one of the biggest oil and gas companies in the US. The company sells and transport, oil, gas, and petrochemical products. The Texas-based oil company pays an annual dividend of $3.48 per share with a 5.61% dividend yield. XOM stock has returned more than 30% to investors in the past twelve months. 

The company has a market of $256 billion. Exxon Mobil Corporation (NYSE: XOM) reported first-quarter revenue of $2.6 billion, up 376% from $536 million in the first quarter of 2020. As of June 18, Exxon Mobil Corporation (NYSE: XOM) shares trade at $60.40. The 52-week price range of XOM is $31.11 – $64.80. On June 15, Credit Suisse maintained a Neutral rating on Exxon Mobil Corporation, with a price target of $72 per share.

As of the end of the first quarter, Engine No. 1 LLC has a significant holding in Exxon Mobil Corporation (NYSE: XOM). The hedge fund run by Chris James owns 917,400 shares in the company worth over $51.3 million, representing 18.8% of their investment portfolio. At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Exxon Mobil Corporation (NYSE: XOM), up from 63 the preceding quarter worth $2.2 billion. 

First Eagle Investment Management, in their Q1 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM) and shared their insights on the company. Here is what the fund said: 

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. Recovering oil prices on improvements in demand for crude and other distillates helped fuel strong performance across the energy complex, including shares of Exxon Mobil. The company’s financial results have improved markedly from the Covid-related demand shocks in 2020, helping ease concerns about the sustainability of Exxon’s dividend, which is among the largest in the S&P 500 Index. In addition, Exxon has reiterated its commitment to reducing capital expenditures, which we believe should further bolster the resilience of its cash flows against future demand slowdowns.”