8 Reasons to Take Advantage of Exxon's Recent Underperformance
Bret Jensen submits:In the last few months, Exxon (XOM) has underperformed the overall market by 5%. Given the likely continued high price of oil for the foreseeable future, this might be an ideal time to acquire a core position in one of the best run oil majors in the world (click to enlarge image):
8 reasons to own Exxon at $82
- Analysts have consistently underestimated Exxon’s earnings power with oil selling at recent levels. It has easily beat earnings estimates each of the last four quarters and consensus estimates for 2011 and 2012 have risen in the last ninety days
- XOM sells in the bottom half of its five year valuation range based on P/B, P/E, P/S and P/CF, so its valuation is hardly overextended
- Exxon has a pristine AAA rated balance sheet. It provides a 2.3% dividend yield and has raised its dividend an average of 8% a year for the
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