5 Hot Oil Stocks To Buy Now

2. Exxon Mobil Corporation (NYSE:XOM)

Average 3-month Volume as of January 31: 17.16 Million

YTD Share Price Gains as of January 31: 6.62%

Number of Hedge Fund Holders: 75

Exxon Mobil Corporation (NYSE:XOM) is one of the hot oil stocks to invest in. On January 31, the company declared a quarterly dividend of $0.91 per share, in line with previous. The dividend is payable on March 10, to shareholders of record on February 14. Exxon Mobil Corporation (NYSE:XOM) also increased and extended its share repurchase program with up to $35 billion of cumulative share repurchases in 2023-2024. In 2022, the company earned $55.7 billion and generated $76.8 billion in cash flow from operating activities by utilizing its advantageous portfolio.

On January 17, Scotiabank analyst Paul Cheng upgraded Exxon Mobil Corporation (NYSE:XOM) to Outperform from Sector Perform with a price target of $135, up from $120. According to the analyst, this upgrade is due to the improved cash flow from refining, which will benefit Exxon Mobil Corporation (NYSE:XOM) more than other major oil companies because it has the highest refining exposure. 

According to Insider Monkey’s Q3 data, 75 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 72 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 33.8 million shares worth $3 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”