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Exxon Mobil (XOM) holds more risk than reward as long term investment

Exxon Mobil Corporation (XOM) currently trades at $40.24 and has grown by 7.25% today. Exxon has struggled in recent years with declining production, was particularly keen to spend. Speaking at ExxonMobil’s annual investor day on March 5, CEO Darren Woods announced that the company would be “leaning into this market when others have pulled back,” to the tune of $30 billion to $35 billion in annual spending. That almost certainly would have involved outspending the company’s cash flow at times. 

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Based on this information, investorsQ rates this stock 4 out of 10. We give it this rating based on current information such as March 16, S&P Global downgraded Exxon’s credit rating from AA+ to AA: still investment-grade, but a signal of the market’s discomfort with the prospect of rising debt. Almost immediately, Exxon put out a press release vowing to look into “all appropriate steps to significantly reduce capital and operating expenses in the near term.”  The high forecast for Exxon Mobil Corporation is $62.00 and the low is $32.00. Notably, the company’s market cap is $169.58 billion with a 52 week high of $83.49 and a 52 week low of $30.11.

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