Below we take a look at why Hedge Funds Were Right About These 5 Soaring Stocks. For our methodology and a more comprehensive list please see Hedge Funds Were Right About These 10 Soaring Stocks.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Shareholders: 84
Year-to-Date Returns: 52.9%
Hedge fund ownership of Exxon Mobil Corporation (NYSE:XOM) hit an all-time high in the first quarter after rising by 25% over the prior two quarters. Crispin Odey’s Odey Asset Management Group and Ray Dalio’s Bridgewater Associates are among the prominent money managers that have built stakes in XOM in recent quarters.
Exxon Mobil Corporation (NYSE:XOM), which is the world’s largest refiner with global capacity of 4.6 million barrels per day, is being richly rewarded for its past investments in cost reductions to fully capitalize on sky-high commodity prices. Exxon Mobil’s immense Q2 adjusted earnings of $17.6 billion blew away estimates, and were nearly $13 billion greater than its windfall from the year-ago quarter.
Exxon Mobil Corporation (NYSE:XOM) shares were recently given a price target of $123 by Bank of America analyst Doug Leggate, up from $120, while the analyst’s ‘Buy’ rating on XOM shares remained intact. Leggate believes Exxon Mobil will continue to lead its fellow oil majors in free cash flow trajectory, and that the company’s share buybacks are likely to intensify after the company’s reaches its cash balance targets.