ExxonMobil Business is an American global oil and gas corporation. They are headquartered in Irving, Texas as the world’s largest non-government owned energy business. This guide will show you how to open a brokerage account and start investing in ExxonMobil stock.
Quick History of ExxonMobil
ExxonMobil is one of the largest publicly listed worldwide oil and gas businesses in the world under the ticker XOM. This corporation was created through the merging of two already large oil corporations, Exxon and Mobil in 1998.
Exxon and Mobil were both descendants from Standard Oil, which was founded in 1870 by John D. Rockefeller. Exxon and Mobil inked a $81 billion merger deal in 1998, establishing ExxonMobil Corp.
ExxonMobil began to exit the direct-served retail sector in the United States in 2008 by selling its service stations. ExxonMobil and Russian oil major Rosneft formed a strategic partnership in 2011 to develop the East-Prinovozemelsky field in the Kara Sea and the Tuapse field in the Black Sea.
Since 1928, ExxonMobil has been a component of the Dow Jones 30 however they were delisted August 2020. ExxonMobil reported in October 2020 that it will lose over 1,600 workers in Europe as a result of the COVID-19. These job losses were essential to create cost savings and will be placed into effect by the end of this year.
The Good and the Bad of Exxon Mobil Stock
Owning stock or shares in a firm has various advantages. Here are some of the benefits and drawbacks of holding ExxonMobil stock.
Pros of Owning ExxonMobil Stock
- In terms of output, assets, and reserves, ExxonMobil is one of the world’s major energy companies
- Investors continue to favor XOM, which has outperformed many of its exclusively petroleum focused counterparts in recent years
- Despite reduced oil prices, ExxonMobil continues to generate solid earnings and cash flows
Cons of Owning Exxon Mobil Stock
- ExxonMobil remains a cash generating powerhouse. The issue is that the company hasn’t had consistent revenues year after year. This is a concern for traders hoping for large dividend hikes and share buybacks.
- Considering the size of the major oil companies, massive multiyear energy initiatives are necessary in order to achieve significant gains for the company. These efforts may have a negative impact on earnings and require Exxon to invest in them for an extended length of time.
- The continuous worldwide transition toward low-carbon energy choices is one of the most serious threats to Exxon’s future. The main concern is that oil and natural gas would become obsolete so rapidly that Exxon will be left with useless energy assets.
Outlook for ExxonMobil Stock
ExxonMobil, as an integrated energy company, owns refining and downstream divisions that have benefited from reduced oil prices. Profits may continue to fall, and cash flows may be less steady, but the company’s balance sheet’s versatility ensures that the company will continue to perform well.
ExxonMobil Corporation stated this year that it expects to earn $2.7 billion, or $0.64 per share, in the first quarter of 2021. They also stated this year that it expects to earn $2.7 billion, or $0.64 per share, in the first quarter of 2021, compared to a loss of $610 million in the first quarter of 2020.
Capital and exploration spending in the first quarter of 2020 was $3.1 billion, a $4 billion decrease over the previous year’s first quarter. The positive first-quarter earnings reflect the benefits of rising commodity prices, and the company’s concentration on structural cost reductions.
In 2021 Exxon Mobil Corporation advanced its energy transition approach by creating their new ExxonMobil Low Carbon Solutions division, which is focused on developing novel, large-scale carbon capture and storage (CCS) technologies.
Steps to Buy ExxonMobil Stock
To buy ExxonMobil stock, you must first create a brokerage account, then a trading account, deposit cash, and then you will be able to start buying shares.
Step 1: Select a Brokerage
A brokerage account is required to begin investing in stocks. Consider creating a brokerage account now so that you can start investing today!
Before choosing a brokerage though, ensure you are doing your due diligence and compare different options to determine which would be the best fit for you. Here is a list of our top brokerage accounts we recommend.
Step 2: Open the Trading Account
After determining which brokerage is ideal for you, you must create an account with them. This account will be used to post transactions and trade stocks.
Opening an account is fairly straightforward and easy. The brokerage you are signing up with should take you step by step through opening a trading account.
Step 3: Deposit Funds Into the Account
You’ll be able to deposit funds to buy ExxonMobil shares once you’ve linked an acceptable payment method to your account. After your account has been officially activated, you must decide how many shares of ExxonMobil stock you want to buy.
It is important to note it may take 1-2 transfer days for your funds to be available, depending on the deposit method and brokerage you chose.
Step 4: Search for ExxonMobil’s Ticker Symbol (XOM)
Find the stock using the ticker symbol (XOM) or the name ExxonMobil and conduct some research before deciding if it’s a good investment for you.
Step 5: Purchase ExxonMobil Stock
Brokers will have a “deal ticket” at the bottom of each page where you may place your order. You will enter the symbol and the number of shares you wish to purchase on the broker’s order form.
You can buy as many shares as you like with a market order, or you may use a limit order to defer the purchase until the stock reaches a particular price.
Is ExxonMobil a Good Buy?
Given the benefits and drawbacks, XOM stock may still be a good investment for long-term and passive investors. Investors who invest now should be aware that Exxon’s prospects in the near term may not be as promising. Exxon Mobil’s cash flows are still heavily reliant on crude oil prices.
The company is currently looking for ventures that can help develop excellent returns in the near future. ExxonMobil has a strong worldwide footprint with activities on all seven continents. In the end though, it is up to each stock trader to decide whether ExxonMobil will continue to generate high profits in the future.
If you’re seeking consistency and earnings through dividends, this investment might be for you. If you want to learn more about how to invest successfully in the stock market, you could consider contacting a financial advisor.