Exxon Mobil Corporation (XOM): Graham Stephan Might Have Moved On, But Core Thesis Remains Intact

We just covered the Graham Stephan Stock Portfolio: Top 11 Stocks and Exxon Mobil Corporation (NYSE:XOM) ranks 4th on this list.

Graham Stephan is not one to take individual stock recommendations lightly. This is because he believes that investing in individual stocks is risky. However, when he does recommend a stock, his followers take that advice to heart. Four years ago, in a video on investing $10,000 in different ways, Stephan singled out Exxon Mobil Corporation (NYSE:XOM) as one of the stocks to buy. The context around the shares has changed dramatically since then, more so in recent months as geopolitical tensions in the Middle East led to a dramatic fallout in global energy stocks because of the closure of the Strait of Hormuz.

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However, the long-term thesis on Exxon Mobil Corporation (NYSE:XOM) remains intact, Hedge funds tracking the firm are focused on the divergence between the GAAP accounting and actual operational earnings power of the company in Q1 2026. While Exxon reported a GAAP net income of $4.2 billion, impacted by $700 million in settled financial hedge losses from Middle East shipping disruptions, the non-GAAP earnings excluding identified items and derivative timing effects skyrocketed to $8.8 billion, comfortably beating the $7.6 billion generated in Q1 2025. Adjusted EPS came in at $1.16, beating the consensus estimate of $1.07 by 8.4%.

While we acknowledge the risk and potential of XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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