5 Biggest Companies That Were Dropped From the Dow Jones Industrial Average (DJIA)

3. Exxon Mobil Corporation (NYSE: XOM) 

Oil giant Exxon was removed from the Dow Jones Industrial Index in 2020, replaced by CRM company Salesforce. Exxon had been in the Dow in some form since 1928. Exxon stock is down more than 27% over the last 12 months. In the fourth quarter, ExxonMobil (NYSE:XOM) reported non-GAAP EPS of $0.03, beating the Wall Street estimates by $0.01. However, revenue in the quarter slid 30% and reached $46.5 billion, missing the Street’s forecast by $2.22 billion.

As of the end of the third quarter, 52 hedge funds out of the 816 funds tracked by Insider Monkey held stakes in Exxon. The total value of these shares is about $1.4 billion.

First Eagle Investment Management said the following about XOM shares in their Q3 2020 Investor Letter:

“The stock of Exxon Mobil continued to struggle in the third quarter, and it lost roughly half its market cap year to date. Despite this, we believed Exxon Mobil was well-equipped to contend with lower prices and remained a compelling investment. The company demonstrated high levels of operational flexibility during the difficult market environment and maintained an upward drift in earnings power. Its high-quality, long-duration assets occupy attractive positions on the cost curve.”