Exxon Mobil Corporation (NYSE:XOM) stock is trading at the same level as it was during the beginning of 2019. Even with company-specific positives, Exxon stock has remained sideways due to economic headwinds. As XOM consolidates in the $67 to $75 range, I believe that investors can consider exposure to the stock. In the next five years, Exxon Mobil stock can be among the best performers in the industry.
Between 2019 and 2025, Exxon Mobil expects to generate free cash flow of $190 billion. This estimate is based on oil trading at $60 per barrel. I believe that oil can trend higher in the coming years. Therefore, free cash flows can possibly exceed the company’s expectations. Even with $190 billion FCF visibility, Exxon Mobil is positioned to increase dividends on a sustained basis. In addition, the company will have ample financial headroom for inorganic growth or aggressive capital expenditure. Considering these factors, I am bullish on XOM stock.
Source: InvestorPlace
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