Shares of Exxon Mobil Corporation XOM have jumped 14% month to date (MTD) compared with the industry’s 8.5% growth. The Zacks Rank #1 (Strong Buy) stock has witnessed upward revisions in the Zacks Consensus Estimate for 2021 earnings in the past seven days.

What’s Favoring the Stock?

The price of West Texas Intermediate (WTI) crude has crossed the $48-per-barrel mark to reach its maximum level since Feb 26. With the approval of coronavirus vaccines across countries, analysts are expecting global fuel demand to witness significant recovery in 2021. This, in turn, is brightening the crude oil pricing scenario. The robust crude price rebound is a boon for ExxonMobil’s upstream operations. Also, recovery in fuel demand will aid the integrated energy giant’s downstream operations.

ExxonMobil recently announced its priority to allocate near-term capital spending on key assets that will secure significant future value. The leading integrated energy firm is planning for $16 to $19 billion in capital and exploration investments in 2021. The company has also set a target for annual investments of $20 billion to $25 billion from 2022 to 2025. The prime assets on which the investments will be focused on comprise the most prolific Permian basin in the United States, offshore oil and gas resources in Brazil and Guyana, and several chemicals projects.

For the rest of the story: Nasdaq

Legal Notice