5 Best Stocks to Buy to Protect Against Inflation in 2022 and Beyond

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 83

Exxon Mobil Corporation (NYSE:XOM) is undervalued, pays dividends, and has a track record of strong quarters. These are only some of the features that make this stock a compelling investment to protect against inflation. As of June 17, Exxon Mobil Corporation (NYSE:XOM) has returned 39.76% to investors over the past twelve months, has a forward PE ratio of 8.88, and a dividend yield of 3.85%. Moreover, this April the company announced market-beating earnings for the fiscal first quarter of 2022. The company reported a revenue of $90.50 billion, up 53.01% year over year, ahead of expectations by $5.62 billion.

On June 7, Credit Suisse analyst Manav Gupta raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $115 from $102 and reiterated a Neutral rating on the shares. The analyst raised his 2022 operating EPS estimate for Exxon Mobil Corporation (NYSE:XOM) to $10.54 from $9.29, and also raised his 2023 operating EPS estimate for the oil giant to $10.36 from $8.71, to account for higher natural gas prices and refining earnings.

At the end of the first quarter of 2022, 83 hedge funds disclosed ownership of stakes in Exxon Mobil Corporation (NYSE:XOM). The total value of these stakes came in at $8.55 billion, up from $5.38 billion in the previous quarter with 71 positions. The hedge fund sentiment for the stock is positive.

As of March 31, GQG Partners is the top stakeholder in Exxon Mobil Corporation (NYSE:XOM) with stakes worth $4.27 billion, up 60% from the fund’s Q4 2021 stakes.

Here is what Saturna Capital had to say about Exxon Mobil Corporation (NYSE:XOM) in its “Amana Funds” fourth-quarter 2021 investor letter:

“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”

You can also take a look at 15 Best Energy Stocks to Buy Now and 10 Best Consumer Staples Stocks.

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