Is Exxon Mobil Corporation (XOM) Offering a Compelling Opportunity?

ClearBridge Investments, an investment management company, released its “ClearBridge Dividend Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was unexpectedly positive for U.S. equity investors, despite global trade wars, conflicts in Ukraine and the Middle East, falling earnings estimates, and a worsening fiscal situation outlook, with the S&P 500 Index up 6.2% at the year’s halfway mark. While the strategy that focuses on quality, risk management, and a disciplined approach to valuation lagged in this momentum-driven environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Dividend Strategy highlighted stocks such as Exxon Mobil Corporation (NYSE:XOM). Exxon Mobil Corporation (NYSE:XOM) is an exploration and production of crude oil and natural gas. The one-month return of Exxon Mobil Corporation (NYSE:XOM) was 4.46%, and its shares gained 2.03% of their value over the last 52 weeks. On July 8, 2025, Exxon Mobil Corporation (NYSE:XOM) stock closed at $114.19 per share, with a market capitalization of $492.118 billion.

ClearBridge Dividend Strategy stated the following regarding Exxon Mobil Corporation (NYSE:XOM) in its second quarter 2025 investor letter:

“We also significantly increased our position in Exxon Mobil Corporation (NYSE:XOM), as commodity weakness weighed on the shares, providing a compelling opportunity. Commodity prices are cyclical but the change underway at Exxon Mobil is secular. The company is simultaneously lowering its cost per barrel and reducing its emissions intensity while growing its production. This is a powerful combination that puts the company in its best position in decades. Exxon Mobil is positioned to deliver double-digit returns, even without any improvement in oil prices. If stagflation occurs, Exxon Mobil’s returns should be even higher, while most other stocks will come under pressure, providing a sturdy portfolio hedge.”

How Exxon Mobil Corporation (XOM) Navigates Market Volatility While Maintaining Dividends

Aerial view of a major oil rig in the middle of the sea, pumping crude oil.

Exxon Mobil Corporation (NYSE:XOM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Exxon Mobil Corporation (NYSE:XOM) at the end of the first quarter, compared to 104 in the previous quarter. 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.

In another article, we covered Exxon Mobil Corporation (NYSE:XOM) and shared the list of stocks Jim Cramer recently commented on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.