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Why Exxon Mobil Corp (XOM) Stock is a Compelling Investment Case

Alex Smith
·3 min read

First Eagle Investment Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 5.64% for the third quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 7.93% in the same quarter. You should check out First Eagle's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, First Eagle highlighted a few stocks and Exxon Mobil Corp (NYSE:XOM) is one of them. Exxon Mobil Corp (NYSE:XOM) is an oil and gas company. Year-to-date, Exxon Mobil Corp (NYSE:XOM) stock lost 53% and on October 29th it had a closing price of $32.97. Here is what First Eagle said:

"The stock of Exxon Mobil continued to struggle in the third quarter, and it lost roughly half its market cap year to date. Despite this, we believed Exxon Mobil was well-equipped to contend with lower prices and remained a compelling investment. The company demonstrated high levels of operational flexibility during the difficult market environment and maintained an upward drift in earnings power. Its high-quality, long-duration assets occupy attractive positions on the cost curve."

QiuJu Song/Shutterstock.com

Yesterday, we published an article revealing that Exxon Mobil Corp (NYSE:XOM) is one of the top 10 best high yielding dividend stocks to buy right now.

In Q2 2020, the number of bullish hedge fund positions on Exxon Mobil Corp (NYSE:XOM) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in Exxon Mobil's growth potential. Our calculations showed that Exxon Mobil Corp (NYSE:XOM) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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