Not only is ExxonMobil (NYSE: XOM), the world’s largest oil and natural gas entity, trading at its 52-week low, it is substantially below what legendary investor Warren Buffett paid for his shares.
ExxonMobil is down for the last week, month, quarter, six months, and year of market action (chart below).
Over the last six months of trading, ExxonMobil has fallen almost 11.50 percent. ExxonMobil is a Dividend Aristocrat. That means it has raised its dividend annually for at least the past 25 years. This in itself shows how strong ExxonMobil is a publicly traded company. For income investors, that is very alluring!
It also shows how it rewards its shareholders with a growing dividend.
ExxonMobil can do this has it has a solid financials. There is little debt. The price-to-earnings ratio is under 12. The price-to-sales ratio is under 1. That makes ExxonMobil appealing to both growth investors and value investors. Depending on economic conditions and the price of oil, there have been times when ExxonMobil is the largest publicly traded company, as measured by market capitalizations.
All in all, ExxonMobil should be attractive to all long term investors.
The share price of ExxonMobil could continue to fall even more. That has certainly been the trajectory since August. It would certainly not be unexpected for ExxonMobil to continue to slide. If it does, long term investors should look upon this as an opportunity to buy at a discount.
The short float is less than one percent, so there are not many betting that the share price will fall even more to make it worth the effort to go short.
At present, ExxonMobil is trading around $89.80, well below what The Oracle of Omaha paid for his shares. The mean analyst target price for the next year is $97.68. That is below the 52-week high of $103.29. Combined with the dividend that has a history of growth, ExxonMobil looks to be a rewarding blue chip for long term investors.