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4-Star Stocks Poised to Pop: ExxonMobil

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas behemoth ExxonMobil (NYSE: XOM  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Exxon's business and see what CAPS investors are saying about the stock right now.

Exxon facts

Headquarters (Founded)

Irving, Texas (1870)

Market Cap

$314 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$277 billion

Management

CEO Rex Tillerson (since 2006)
CFO Donald Humphreys (since 2006)

Return on Equity (Average, Past 3 Years)

30.1%

Cash / Debt

$10.86 billion / $9.2 billion

Dividend Yield

2.5%

Competitors

Royal Dutch Shell (NYSE: RDS-A  )
BP (NYSE: BP  )
Chevron (NYSE: CVX  )

Other Highly Rated Oil and Gas Stocks

Total (NYSE: TOT  )
Petrobras (NYSE: PBR  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 7,157 members who have rated Exxon believe the stock will outperform the S&P 500 going forward. These bulls include WECpoker and All-Star mrindependent, who is ranked in the top 1% of our community.

Last week, WECpoker singled out Exxon as a super-slick selection:

This stock is well-known to underperform during times of rising oil prices and holding its price well during declining oil prices. As oil prices have moved higher and seem likely to go higher still on a world-wide recovery, I have noticed that Exxon's forward PE is a measly 9.2. I also love the [XTO Energy (NYSE: XTO  ) ] merger, so I am on this for the long haul.

In a pitch from two days ago, mrindependent expands on that bullish line of thinking:

Looking for oil and gas plays to add to portfolio in anticipation of longterm commodities inflation. Exxon obviously fits the profile. Now seems like a reasonable time to buy considering that the company is selling near its 52 week low. The current p/bv ratio is 2.9 compared to a longterm average p/bv of 3.5. The current p/e ratio is above average because earnings are at a low ebb. Current dividend yield is 2.55 and the company has adequate earnings and cash to maintain.

What do you think about Exxon, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Total and Petrobras are Motley Fool Income Investor picks. The Fool owns shares of XTO. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 17, 2010, at 11:04 AM, renegade1972 wrote:

    LAS VEGAS, March 16, 2010 – Ideal Financial Solutions, Inc. (IFSL) today announced audited financial results for the years ended December 31, 2008 and 2009. Revenue for the year ended December 31, 2009 of $7.3 million, was a 690% increase over $924,000, the revenue for the prior year. Net income for 2009 year was $883,500, which represents an increase of 375% compared to the net loss ($323,000) in the prior year. In addition, cash flows from operations were $736,000, which was an increase of over 900% compared to the prior year of 72,000.

    These financial statements include an increase in total assets of nearly 300% from $179,000 to $752,000, which mainly consists of cash and merchant cash reserves. Total liabilities resulted in a decrease of 25%, which consists of a 190% increase in accounts payable due to increased operations, and decreases in both accrued wages and notes payable of a combined $627,000 or 41% less than the previous year.

    why is this not new this is a company beating the odds

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DocumentId: 1135627, ~/Articles/ArticleHandler.aspx, 5/25/2012 10:06:37 PM

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Related Tickers

5/25/2012 4:01 PM
XOM $82.08 Down -0.53 -0.64%
ExxonMobil Corp CAPS Rating: *****
RDS-A $62.83 Down -0.19 -0.30%
Royal Dutch Shell… CAPS Rating: ****
TOT $43.89 Up +0.13 +0.30%
Total SA. (ADR) CAPS Rating: *****
XTO $41.81 Down +0.00 +0.00%
XTO Energy, Inc. CAPS Rating: *****
BP $38.36 Up +0.13 +0.34%
BP p.l.c. (ADR) CAPS Rating: ****
CVX $98.86 Down -1.20 -1.20%
Chevron Corp CAPS Rating: *****
PBR $19.40 Up +0.15 +0.78%
Petroleo Brasileir… CAPS Rating: ****

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