Exxon Mobil Corporation (XOM): Among the Best Stocks to Buy Before Spring

As the weather begins to warm and the spring season approaches, investors are looking for stocks that can thrive in the coming months. One company that stands out is Exxon Mobil Corporation (XOM), the world's largest publicly traded international oil and gas company. With a strong financial performance, strategic acquisitions, and investments in renewable energy and carbon capture technologies, Exxon Mobil is well-positioned for growth in the upcoming spring season.



Exxon Mobil's strong financial performance is evident in its recent earnings reports. In the fourth quarter of 2024, the company reported earnings of $7.6 billion, or $1.72 per share, on a GAAP basis. This represents a 15.98% increase from the current stock price of $111.33. The company's earnings were driven by strong production from its Permian and Guyana assets, as well as record sales volumes of high-value products. Exxon Mobil's robust earnings growth is supported by its structural cost savings, which have totaled $12.1 billion since 2019. These cost savings have helped the company offset inflation and growth, contributing to its profitability.



Exxon Mobil's strategic acquisitions have played a significant role in its long-term growth prospects. The company's investments in the Permian Basin and Guyana have resulted in record production and high-value product sales volumes. Additionally, Exxon Mobil's acquisition of a 25% stake in the Sakhalin-1 oil and gas project in Russia has provided the company with access to significant oil and gas reserves. These strategic acquisitions have helped Exxon Mobil build an "advantaged portfolio" of assets, which are expected to generate higher returns than the industry average.



Exxon Mobil's investments in renewable energy and carbon capture technologies are crucial for its future success. The company has been expanding its presence in the renewable energy sector, particularly in wind and solar power. In 2021, Exxon Mobil announced plans to invest $3 billion in low-carbon energy projects by 2025, with a focus on wind and solar power. These investments are expected to generate significant returns, with an internal rate of return (IRR) of 10% or more. Additionally, Exxon Mobil is investing in carbon capture and storage (CCS) technologies, which capture and store CO2 emissions from industrial processes. The company has several CCS projects in development, including the LaBarge Energy Center in Texas, which is expected to capture and store up to 10 million metric tons of CO2 per year.



Exxon Mobil's strong financial performance, strategic acquisitions, and investments in renewable energy and carbon capture technologies make it an attractive stock to buy before the spring season. The company's earnings growth, structural cost savings, and advantageous portfolio of assets position it for a strong performance in the coming months. Additionally, Exxon Mobil's investments in renewable energy and CCS technologies demonstrate its commitment to addressing climate change and meeting regulatory requirements, further enhancing its reputation with customers, investors, and other stakeholders.



In conclusion, Exxon Mobil Corporation (XOM) is among the best stocks to buy before the spring season. The company's strong financial performance, strategic acquisitions, and investments in renewable energy and carbon capture technologies position it for a robust performance in the coming months. As the weather warms and the spring season approaches, investors should consider adding Exxon Mobil to their portfolios to capitalize on its growth potential.