Exxon Mobil Corporation (XOM)

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4 Magnificent Stocks to Buy That Are Near 52-Week Lows
By: The Motley Fool | February 28, 2024

Industrial and energy companies can be challenging to follow because their businesses can have big ups and downs based on the economy, interest rates, or commodity prices.

Sometimes, it's best to buy these companies on weakness when things aren't going well, anticipating that another upswing will eventually come. Importantly, these companies must be financially built for the tough times.

Here are four fantastic industrial and energy stocks with rock-solid fundamentals, all trading near their 52-week lows today.

1. ExxonMobil

Energy giant ExxonMobil (NYSE: XOM) is a fixture in fossil fuels. The company explores for, extracts, refines, and sells oil and gas products. ExxonMobil enjoyed banner years in 2022 and 2023, but the stock is near its 52-week lows due to weakness in commodity prices. The price of oil has retreated from triple-digits to between $70 and $80 per barrel. While refining margins improve when oil prices drop, the exploration business is too big to offset falling oil prices.

The good news is that ExxonMobil is financially sound. The company has $31 billion in cash on its balance sheet against $41 billion in total debt, resulting in just $10 billion net debt. Investors can enjoy a solid 3.6% dividend yield at the current share price, and the company has raised its dividend for 41 consecutive years, showing it's endured multiple industry ups and downs.

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