Multiple Tailwinds Blowing for Oil Stock

Upgrades could help boost the shares as well

Feb 14, 2023 at 1:20 PM

The shares of Exxon Mobil Corp (NYSE:XOM) are fresh off a bullish outside day after the company's quarterly earnings report, and are enjoying tailwinds from Russia’s move to reduce oil output. The security staged a strong rally from October to November, and could do so again heading into March, especially since the pattern it has formed from November until now is comparable to what shares did from June to October, before they moved above their prior highs.

Though analysts are mostly bullish on Exxon Mobil stock, there is still room for upgrades. In fact, 13 of the 29 analysts in question still call the equity a tepid "hold" or worse. Meanwhile, short interest increased 16% in the first half of January, and shorts have already shifted into covering mode after the energy name's quarterly results.

What’s more, the equity was on TD Ameritrade’s client net seller list for five months in 2022. Our recommended call has a leverage ratio of 7.6, and will double in value on a 12% pop in the underlying shares.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this XOM commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.