U.S. markets closed
  • S&P 500

    3,699.12
    +32.40 (+0.88%)
     
  • Dow 30

    30,218.26
    +248.74 (+0.83%)
     
  • Nasdaq

    12,464.23
    +87.05 (+0.70%)
     
  • Russell 2000

    1,892.45
    +43.75 (+2.37%)
     
  • Crude Oil

    46.09
    +0.45 (+0.99%)
     
  • Gold

    1,842.00
    +0.90 (+0.05%)
     
  • Silver

    24.32
    +0.18 (+0.76%)
     
  • EUR/USD

    1.2127
    -0.0022 (-0.18%)
     
  • 10-Yr Bond

    0.9690
    +0.0490 (+5.33%)
     
  • GBP/USD

    1.3438
    -0.0015 (-0.11%)
     
  • USD/JPY

    104.1400
    +0.2800 (+0.27%)
     
  • BTC-USD

    19,100.66
    +52.37 (+0.27%)
     
  • CMC Crypto 200

    365.19
    -14.05 (-3.71%)
     
  • FTSE 100

    6,550.23
    +59.96 (+0.92%)
     
  • Nikkei 225

    26,751.24
    -58.13 (-0.22%)
     

Why Imperial Oil (IMO) 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 Imperial Oil Ltd (NYSE:IMO) is one of them. Imperial Oil Ltd (NYSE:IMO) is a petroleum refining company. Year-to-date, Imperial Oil Ltd (NYSE:IMO) stock lost 51.2% and on October 29th it had a closing price of $12.53. Here is what First Eagle said:

"Imperial Oil (about 70% owned by Exxon Mobil) is a highquality integrated energy company that fell alongside other oil producers in the quarter. Focused on the Canadian oil sands, the third-largest proven oil reserve in the world, Imperial has a long reserve life even without new discoveries. Imperial is well integrated across the energy value chain, and its operational advantages, combined with what we believe to be a resilient balance sheet and a well-aligned management team have translated into a business that has offered durable cash flows and solid value creation for shareholders over time."

saudi, arabia, oil, plant, gas, night, business, petrol, power, petroleum, sunset, chemistry, automotive, tower, economy, lighting, iran, diesel, pollution, greenpeace, pipeline, engineering, carbon, built, stack, smokestack, refinery, ecology, steam, chemical, supply
saudi, arabia, oil, plant, gas, night, business, petrol, power, petroleum, sunset, chemistry, automotive, tower, economy, lighting, iran, diesel, pollution, greenpeace, pipeline, engineering, carbon, built, stack, smokestack, refinery, ecology, steam, chemical, supply

anekoho/Shutterstock.com

Our calculations showed that Imperial Oil Ltd (NYSE:IMO) 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.