XOM’s $1,000 investment grew to nearly $3,000 over five years, doubling the S&P 500’s return after cost cuts and acquisitions.
Exxon Mobil (XOM) turned a $1,000 investment into nearly $3,000 over five years, outperforming the S&P 500 by nearly 100 percentage points. The gains followed CEO Darren Woods’ cost overhaul, the $60 billion Pioneer Natural Resources acquisition, and record production of 4.7 million oil-equivalent barrels per day by 2025.
Prior to 2020, XOM lagged the S&P 500 by nearly 100 percentage points over a decade, though its 43-year dividend growth streak softened the blow. The stock was removed from the Dow Jones Industrial Average in August 2020 amid pandemic-driven crude demand collapse but rebounded sharply after Russia’s invasion of Ukraine sent crude prices soaring.
XOM now trades at a 15x forward P/E with a 2.73% yield and a $20 billion buyback program, positioning it as a compelling income stock if crude prices remain stable.