Buy Exxon Mobil Shares: The Complete Guide
Published: 4 November 2020 by Valentina
Buying Exxon Mobil shares means buying a stock at an affordable price, focusing on the recovery of oil, which as a consequence will also drag the shares of this large multinational upwards.
The large oil companies have led the economy of the last two centuries and even now, despite the crisis, they have a significant influence on trade all around the world. We know that businesses are still very dependent on oil and it is difficult to think that a giant like Exxon will not recover from this situation.
The first choice to make, even before investing, is to select the right broker. To buy Exxon Mobil shares, you need a CFD Broker like eToro, that allows you to save on trading fees and operate safely. Here are the main CFD brokers on the market:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Exxon Mobil: What is it?
Exxon Mobil Corporation is one of the largest oil companies in the world. It operates under the name of Exxon Mobil and its headquarters are located in the most famous American state for oil wells: Texas.
It was born in 1999 from the merger between Exxon (ex Standard Oil Company of New Jersey) and Mobil (ex Standard Oil of New York).
Both Exxon and Mobil were descendants of Standard Oil, founded by John D. Rockefeller and associates in 1870 as the Standard Oil Company of Ohio. In 1882, this company had grown so much, that it was split into the Standard Oil Company of New Jersey and the Standard Oil Company of New York, which were part of the same holding: The Standard Oil Trust.
Over the following decades, these companies, which in the meantime have changed their name several times, have grown steadily until 1998. In that year, the largest merger agreement in the world was signed: With a capital of 73.7 billion US dollars, Exxon Mobil Corp was born.
At the time of the merger, Exxon was the largest energy company in the world, while Mobil was the second largest in the US, so their union spawned a behemoth.
In 2019, ExxonMobil reached a net gain of $ 14.77 billion, with annual revenues of $ 259.497 billion – less compared to the previous year.
How to buy Exxon Mobil shares?
CFD Brokers are the simplest and safest intermediaries to buy Exxon Mobil shares without paying commissions.
CFDs (contracts for difference) are regulated contracts that have the same price as the corresponding stock and allow you to invest up or down (short selling) without commissions.
Here’s how to invest with CFDs:
- To buy Exxon Mobil shares, you need to buy the “XOM” CFD and you will make a profit if the stock prices go up.
- If, on the other hand, you are investing on the falling of Exxon Mobil stock prices, you must sell the “XOM” CFD and you will earn if the prices fall.
Once the desired profit has been reached (up or down), just close the transaction and any profit will be net, without the addition of any commission.
Buy Exxon Mobil shares with the best platforms
The FCA or CySEC licenses allow you to evaluate which are the best platforms to buy Exxon Mobil shares, but it is also necessary to consider other characteristics, such as the platform, the services offered, training, and assistance.
The best suited brokers to buy Exxon Mobil shares are eToro, ForexTB and IQ Option.
eToro: Automated trading and intuitive platform
eToro needs no introduction: It is the most popular online broker in the world. It operates with a very intuitive platform that we can see below in a screenshot of the Exxon CFD:
To buy Exxon Mobil shares (or sell them) you have to click on “Invest”, decide whether to buy or sell the stock and how much to invest in the single operation.
FCA confirmed the reliability of this intermediary by issuing an operating license for the UK, but eToro obviously has authorizations for many other countries in the world, too.
The fame of eToro is due not only to its intuitive platform, but also to a patented automatic trading system: Copy Trading. This function allows you to copy the operations performed by the best traders in the world (on eToro) automatically and for free.
Copy Trading works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders:
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Free Course and Trading Signals
ForexTB is a CySEC regulated CFD Broker which certifies it throughout Europe, where it is well known for its high level services.
To differentiate itself from the competition, it offers two trading platforms, both for free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
ForexTB training starts from one of the best trading courses on the market, which is offered for free to all users, and allows you to know the rules underlying technical analysis.
The operational support consists of the free trading signals that are sent to all investors. They are reliable and precise operational indications, developed by the Trading Central, and have a success rate of 70%. With the official link below you can receive them for free:
IQ Option: Minimum deposit and training
IQ Option has managed to get noticed in the crowded world of financial intermediaries, thanks to a peculiarity: The minimum deposit.
With IQ Option, the minimum deposit required to open a real account is 10 Euros.
This entry threshold allows anyone to access the world of trading, even with a small amount of capital available. The FCA license confirms the seriousness of this Broker, which allows you to invest even 1 Euro in Exxon shares.
To practice without any risk, you can always use the Demo account, at least until you have the right command of the trading platform, one of the most modern in the industry.
For those who want to deepen technical analysis, IQ Option offers a very rich educational section, which can be accessed for free.
Exxon Mobil: Real-time quotation
Exxon Mobil dividends
Dividends paid by Exxon Mobil have grown for 13 consecutive years by an average of 4.8% per year.
Exxon Mobil pays an annual dividend of $ 3.48 per share, but this year is forced to suspend payments due to the global crisis resulting from the coronavirus pandemic.
The collapse in the price of oil, due to a drop in demand, has put all oil companies and oil-related stocks in difficulty. Not even a giant like Exxon can afford “wasting” money to pay its dividends. Much better to save it and reinvest everything on the company that has to resist waiting for better times.
Is buying Exxon Mobil shares worth it?
The XOM stock, the ticker used by Exxon in its listing on the New York Stock Exchange, is known as one of the best Dog of the Dow, which means of the strongest stocks of the Dow Jones.
But this does not guarantee that buying Exxon Mobil shares is a good deal. This multinational is also suffering strongly from the current crisis, as we can see from the 5-year graph below, with the fearful collapse in March 2020.
However, the possibility of a strong recovery in prices is very likely, while a possible bankruptcy is a very remote possibility. So, at these discounted prices, buying Exxon Mobil shares can be one of the most profitable investments on the market.
To diversify it is best to avoid buying oil or ETFs on oil, if you buy Exxon shares, in order not to get too far off in the crude sector. So, it is convenient to select a maximum of a couple of investments in the sector and complete the portfolio with companies that do not depend directly on oil.
Exxon Mobil: The Competitors
Exxon Mobil’s competitors are international giants. We are talking about the major oil companies in the world and below we list just a few:
- Saudi Aramco
- Dutch Shell
- British Petroleum
Buy Exxon Mobil Shares: Forecasts
The forecasts for Exxon Mobil shares are rather conservative; what frightens analysts the most are the timing, which could lengthen considerably and therefore the company’s strength becomes the most important factor to consider.
The most important international investors are positioned higher on Exxon stock but, as we can see below, they maintain very cautious forecasts:
- Morgan Stanley slightly revised its target price for Exxon Mobil from $ 44.00 to $ 45.00 and gave the shares an “equal weight” rating.
- BNP Paribas has moved from an “underperforming” rating to a “neutral” rating for Exxon Mobil.
- JPMorgan Chase & Co. maintains a “pending” rating on Exxon shares and sets a price target of $ 51.00 on the stock.
- Credit Suisse Group has set a “pending” rating and a price target of $ 47.00 on Exxon Mobil stock.
- Mizuho still has a “neutral” rating for Exxon and has lowered its price target from $ 60.00 to $ 50.00 for the stock.
- SunTrust Banks looks forward to Exxon stock and sets a price target of $ 41.00 for the stock.
Strategies for investing in Exxon Mobil shares
The most effective strategies for investing in Exxon Mobil stock always take into account the basic rules of trading:
- You should never invest more than 3% of the available capital on a single operation.
- The Stop Loss must be set at the time of the order, taking into account the Fibonacci retracements and the Pivot Points.
It is the duration of the investment that most differentiates the strategies to be followed:
- In the short term (a few weeks or months), you can invest upwards until the price is below the target of $ 52. Above this level, it is advisable to do Swing trading following the short term stock movements.
- In the long term (over 6 months), the trend is bullish, but it can takes a while; therefore, you need to keep the stock in your portfolio for a long time and be patient; the investment offers incredible profit opportunities. The stop loss must be positioned below the 2020 low and moved to the entry level as soon as possible.
Buy Exxon Mobil Shares: Target Price
Analysts at the eToro Trading Desk have issued positive evaluations for the Exxon Mobil stock. Their twelve-month average target price is $ 52.09, forecasting a 26.06% rise in Exxon stock within one year.
Buying Exxon Mobil (XOM) shares is undoubtedly an interesting investment, but you must follow a rigorous strategy and do not panic if the price, before rising, makes some downward hikes.
If you have little trading experience, it is advisable to practice on a Demo account before investing seriously. Later, you can also deposit the minimum required by the CFD Broker you have chosen and trade on real markets. Here are the official links to access the Demo accounts:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Access the IQ Option Demo account for free with this link
YES, but you need to follow the right trading strategies, which we talk about in this guide.
The best way to buy Exxon shares is to use commission-free CFD brokers.
The 12-month target price for Exxon shares is $ 52.09.
eToro is the most suitable broker to buy Exxon shares safely.