Is Exxon Mobil Corporation (XOM) the Best Energy Stock to Buy Right Now?

From Yahoo Finance: 2025-05-10 03:54:00

In a recent article, we identified the 13 Best Energy Stocks to Buy Right Now, including Exxon Mobil Corporation (XOM). The energy sector has seen a 4.64% decline in 2025 due to trade war tensions, economic slowdown fears, and falling oil prices. Natural gas and LNG have thrived, with the US becoming the largest LNG exporter. AI is expected to boost the natural gas industry, with data centers potentially increasing US gas demand by 2% in 2040.

The price of natural gas has doubled since March 2024, providing relief to the oil and gas sector amidst falling crude prices. Exxon Mobil Corporation (XOM) surpassed earnings expectations in Q1 2025, reporting an adjusted EPS of $1.76. The company generated $13 billion in cash flow and distributed $9.1 billion to shareholders. Despite ranking 3rd on the list of best energy stocks, AI stocks are seen as offering higher returns in a shorter timeframe.

Exxon Mobil Corporation (XOM) is a global integrated fuels, lubricants, and chemical company with operations on six continents. The company reported a 6% decline in profits in Q1 2025 due to market conditions but has taken steps to improve profitability, including $12.7 billion in cost savings since 2019. XOM distributed $9.1 billion to shareholders in Q1 and has raised dividends for 41 consecutive years. While XOM shows potential, AI stocks are seen as a more promising investment option.

Read more: Is Exxon Mobil Corporation (XOM) the Best Energy Stock to Buy Right Now?