Is Exxon Still a Good 'Buy'?
ExxonMobil is America's biggest company by market cap and has been profitable for the last five quarters. So should investors still be buying the oil giant? Andrew Lees, portfolio manager at Invesco Energy Fund, and Shawn Reynolds, portfolio manager at Van Eck Global, shared their insights.
“Exxon is emblematic of the entire industry, in that it’s very hard to find resources and growth production when you’re the size of Exxon,” Reynolds told CNBC.
Reynolds added that the oil firm will have a hard time growing organically as supply costs will rise.
"For us to get really interested in Exxon [would require] a valuation story or for them to get very aggressive on the acquisition front," he said.
In the meantime, Lees said although it is tough for Exxon to see further growth, it offers "good shareholder returns, stock buyback opportunities and dividends."
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Other Oil Giants:
Royal Dutch Shell
Lees’ fund owns some shares of Exxon.
Reynold's fund does not own any shares of Exxon.