This oil stock finally has technical momentum on its side, Josh Brown says

Oil Stock Gains Technical Strength, Signaling Potential Opportunity for Investors

Imagine Exxon Mobil as a giant ship slowly turning in the ocean—once it picks up speed in a new direction, it can go far and fast. That’s why what’s happening with Exxon right now matters for investors.

Why Investors Should Care About Exxon Mobil

Exxon Mobil is one of the biggest oil and gas companies in the world. When its business improves, it can pull the whole energy sector forward—or drag it down if things go badly. Right now, experts say Exxon is getting ready for a strong run, which could mean good news for people who own its stock or invest in energy funds.

Bull Case: Reasons to Be Positive on Exxon

  • Strong Performance: Exxon’s stock is up more than 10% this year, and some experts think it could go higher, maybe breaking out above $125 per share.
  • Big Projects Coming: A major project called the Golden Pass LNG terminal (which helps ship natural gas overseas) is set to start by the end of the year. This could bring in a lot more money for Exxon.
  • Reliable Dividends: Exxon has paid and grown its dividends for over 40 years, which is rare and attractive to income-focused investors.
  • Cost Cutting: Exxon says it will cut another $6 billion in costs by 2027, saving $15 billion compared to 2019. Lower costs mean more profit, even if oil prices fall.
  • Strong Analyst Ratings: Out of 29 analysts, most say to buy or hold Exxon, with only one saying to avoid it. The average price target is about $129, which is 8.5% higher than today’s price.

Bear Case: What Could Go Wrong?

  • Slow Growth: Exxon’s stock has moved sideways since 2022, and some worry it could get stuck if oil prices drop or if new projects don’t deliver as expected.
  • Oil Market Risks: Global oil prices can swing wildly due to wars, politics, or new energy rules. If prices fall, Exxon’s profits could shrink fast.
  • Competition from Clean Energy: As the world shifts to solar, wind, and electric cars, oil companies like Exxon may face long-term challenges.
  • High Expectations: If Exxon doesn’t deliver on its promises, investors could be disappointed, causing the stock to fall.
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How Exxon Stacks Up Against the Past

Compared to 2019, Exxon now earns more than twice as much profit from every barrel of oil, thanks to its cost-cutting. This is impressive, but it’s also a reminder that oil companies must always find ways to stay lean when prices are unpredictable.

Looking at history, Exxon’s steady dividends are rare. According to Dividend.com, only a handful of U.S. companies have raised dividends for over 40 years—Exxon is in that small club.

Investor Takeaway

  • Consider Exxon for steady income: Its long history of paying dividends makes it a favorite for those who want regular cash from their investments.
  • Watch for the breakout: If Exxon’s price climbs above $125, it could keep going higher. But don’t chase the stock if it gets too expensive.
  • Balance energy with other sectors: Oil stocks can be bumpy. Make sure your portfolio isn’t too heavy in one area.
  • Keep an eye on global trends: Changes in oil prices or big moves toward clean energy could change Exxon’s outlook fast.
  • Do your homework: Analyst opinions are helpful, but always research and think about your own goals before buying any stock.

For the full original report, see CNBC

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