Jim Cramer Says Buy Exxon On Dip

CNBC host Jim Cramer has recommended buying shares of oil giant Exxon Mobil Corp. XOM on the dip.

What Happened: “Everything is going right for them," Cramer said on CNBC’s “Squawk on the Street” show, noting a strong of bullish factors including dividends, Permian Basin, the board shake-up pushed forward by ESG activist investors

ESG is the acronym for Environmental, Social and Corporate Governance.

“If this stock comes down, I want to use it as a reason to buy,” the “Mad Money” host added.

See Also: Exxon Board Shakeup More About Dividend Than Climate Change, Analyst Says

Why It Matters: Cramer’s views assume significance as he had said last year that he was “done with fossil fuels” and had likened oil companies to tobacco stocks.

It was reported on Monday that BMO Capital analyst Phillip Jungwirth initiated coverage on Exxon Mobil with a Market Perform rating and a price target of $69, noting that Exxon has benefited from rising oil prices and it has a market-leading upstream pipeline.

Meanwhile, activist investors - who have been pushing for Exxon to cut spending, increase shareholder returns and invest in renewable energy technology - have recently won seats on ExxonMobil’s board of directors.

Exxon shares are up 53.1% year-to-date in 2021, more than triple the S&P 500 Index’s returns of 16.7%.

Price Action: Exxon Mobil shares closed 0.1% lower in Monday’s regular trading session at $61.17 and further edged down less than 0.1% to $61.16.

Read Next: Thinking About Buying Stock Or Options In Upstart, Clover Health Or Exxon Mobil?

Photo: Courtesy of User on Wikimedia