ExxonMobil (NYSE: XOM), one of the world’s largest integrated energy companies, has been a reliable blue chip stock.
Over the past five years, its shares have risen more than 150% — outperforming the S&P 500’s gain of roughly 80% — even as oil prices went through wild swings
Will ExxonMobil stay ahead of the market over the next five years? Let’s review its business model, catalysts, and challenges to see where its stock might be headed. Why is ExxonMobil a stable long-term investment?
ExxonMobil operates in over 56 countries. Its upstream business extracts oil and natural gas, its midstream business operates more than 16,000 miles of pipelines across North America, and its downstream refining business manufactures and markets petroleum products. High oil prices are beneficial for its upstream business, as they drive revenue to outpace expenses, but they can hurt its downstream business as input costs rise.