5-Star Stocks Poised to Pop: ExxonMobil

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas gorilla ExxonMobil (NYS: XOM) has earned a coveted five-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

$407.5 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$434.8 billion

Management

Chairman/CEO Rex Tillerson
CFO Donald Humphreys

Return on Equity (average, past 3 years)

24.7%

Cash/Debt

$17.8 billion / $15.6 billion

Dividend Yield

2.6%

Competitors

BP
Chevron
ConocoPhillips


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 8,321 members who have rated Exxon believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those bulls, rtcresap, highlighted Exxon as particularly solid bargain opportunity: "[Return on invested capital] that is consistently in the 15% range or above, yet a valuation (below 10 p/e, price/book at about 2 1/2) that is unjustifiably low in light of how consistently profitable it is. Worst case scenario, the price of oil drops to where it was in the 90's -- you know, back when Exxon was still so profitable it trounced the market."

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Exxon may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: ExxonMobil originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Exxon. Motley Fool newsletter services have recommended buying shares of Chevron. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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