Goldman Sachs Energy Stocks: Top 5 Stock Picks

4. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 72

Goldman Sachs’ Stake Value: $1,157,039,000

Exxon Mobil Corporation (NYSE:XOM) is one of the most prominent Goldman Sachs energy stocks to monitor. Goldman Sachs owned 13.5 million shares of Exxon Mobil Corporation (NYSE:XOM) in the second quarter of 2022, worth $1.16 billion and representing 0.26% of the total portfolio. On October 28, Exxon Mobil Corporation (NYSE:XOM) declared a $0.91 per share quarterly dividend, a 3.4% increase from its prior dividend of $0.88. The dividend is payable on December 9. 

On October 31, Truist analyst Neal Dingmann raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $114 from $111 and maintained a Hold rating on the shares. The company’s Q3 results included U.S. refining throughput levels not seen since 2008, as its Energy Products division reported 13% growth, the analyst told investors. He further observed that Exxon Mobil Corporation (NYSE:XOM) continues to “print money”, generating more than $17 billion in free cash flow last quarter, which is “notable” given the lower oil prices and the flat total production.

According to Insider Monkey’s Q2 data, 72 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 83 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading position holder in the company, with 47.5 million shares worth over $4 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.”