What's Going On With Exxon Mobil (XOM) Stock?

Exxon Mobil Corp XOM shares have remained flat over the past week since Donald Trump's presidential election win, reflecting investor caution about how his energy policies may impact the oil and gas giant.

Although Trump's pro-fossil fuel stance and potential regulatory rollbacks favor Exxon's business model, broader uncertainties around global oil demand and geopolitical risks are tempering market enthusiasm.

What To Know: One of the most immediate potential benefits for Exxon under a Trump administration would be the loosening of environmental regulations. Trump's previous term saw a significant easing of restrictions on drilling, fracking, and pipeline construction, and a similar approach is expected this term.

This could allow Exxon to expand domestic operations more freely, particularly in high-yield shale areas like the Permian Basin, boosting production capacity without facing significant regulatory hurdles.

However, it's unclear whether demand will fully recover, particularly with shifting global priorities toward renewable energy.

Another aspect of Trump's policy agenda is his intention to exit the Paris Climate Agreement and potentially unwind portions of the Inflation Reduction Act that subsidize renewable energy.

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This could slow the transition to green energy in the U.S., potentially extending the timeline for oil and gas demand, which is positive for Exxon's long-term outlook in fossil fuels.

However, these moves also risk diplomatic tensions and could spur foreign governments to double down on renewable commitments, potentially limiting Exxon's international expansion opportunities.

What Else: Exxon's reliance on global markets also faces uncertainties tied to Trump's approach to trade and international sanctions. Trump has signaled possible sanctions relief on Russia, which could open new partnership opportunities for Exxon in Russian oil projects, a region with untapped potential.

However, increased tariffs and trade tensions with other countries could disrupt the global oil market, adding complexity to Exxon's growth strategy.

Overall, while Trump's policies may create a more favorable operating environment for Exxon domestically, global demand uncertainties and international risks keep investors cautious.

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Investors can gain exposure to XOM by investing in the Energy Select Sector SPDR Fund XLE.

Is XOM A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Exxon Mobil‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Exxon Mobil does pay a dividend, which yields 3.37% per year as of the closing price on Nov. 13, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 11.56%, you'll need to buy a share of Cardinal Energy by the Nov. 29, 2024. Once done, you can expect to receive a nominal payout of $0.06 on Dec. 16, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Exxon Mobil will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.