If You Buy ExxonMobil (XOM) Stock Today, Here's Where It Could Be in 5 Years

ExxonMobil (NYSE: XOM), 1 of the world's largest integrated vigor companies, has been a reliable bluish spot stock. Over the past 5 years, its shares person risen much than 150% -- outperforming the S&P 500's summation of astir 80% -- adjacent arsenic lipid prices went done chaotic swings.

Will ExxonMobil enactment up of the marketplace implicit the adjacent 5 years? Let's reappraisal its concern model, catalysts, and challenges to spot wherever its banal mightiness beryllium headed.

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Why is ExxonMobil a unchangeable semipermanent investment?

ExxonMobil operates successful implicit 56 countries. Its upstream concern extracts lipid and earthy gas, its midstream concern operates much than 16,000 miles of pipelines crossed North America, and its downstream refining concern manufactures and markets petroleum products.

High lipid prices are beneficial for its upstream business, arsenic they thrust gross to outpace expenses, but they tin wounded its downstream concern arsenic input costs rise. Its midstream concern generates unchangeable profits careless of fluctuating lipid prices, arsenic it simply charges "tolls" for transporting those resources done its pipelines and infrastructure.

Over the agelong term, that diversification makes ExxonMobil a much unchangeable concern than stand-alone upstream and downstream companies. That's wherefore it's raised its dividends annually for 43 consecutive years, portion different lipid companies periodically paused their payouts. It presently pays an charismatic guardant output of 2.7%.

What volition hap to ExxonMobil implicit the adjacent 5 years?

ExxonMobil is partially exposed to the Iran conflict, since it inactive gets astir a 5th of its lipid from the Middle East. However, it really gets astir of its lipid and state from the United States -- wherever it operates its largest lipid fields successful the Permian Basin and offshore rigs crossed the Gulf of Mexico.

To trim its vulnerability to the Middle East, it's been expanding successful Guyana, 1 of the world's fastest-growing lipid regions; importing lipid sands from Canada, and investing successful different higher-growth markets crossed Latin America, Asia, and Africa. It's besides exporting much liquefied earthy state (LNG) and expanding its higher-growth c seizure and retention business. All of those irons successful the occurrence should thrust ExxonMobil's dependable net maturation implicit the adjacent 5 years.

From 2025 to 2028, analysts expect its EPS to turn astatine a 19% CAGR. If it matches those estimates, grows its EPS astatine a 15% CAGR done 2031, and inactive trades astatine 14 times its existent year's net by the last year, its banal could emergence astir 60% implicit the adjacent 5 years. So if you're looking for a elemental vigor play that tin consistently bushed the S&P 500's mean yearly instrumentality of 10%, ExxonMobil checks each the close boxes.