Tom Nash

Episode 11 out of 30 - Inflation Stocks

Added 2021-08-26 08:33:46 +0000 UTC

Hey Patreons, this is episode 11 out of 30 in our inflation friendly stocks.

As I mentioned, there are number of industries that tend to perform better during inflationary times. In this post I want to show you an energy stock which I fell will do very well during inflationary times and high interest rates.

Exxon Mobil Corporation - XOM

Exxon is a $232.46 billion company, trading at $55 per share.

Why I like it for high inflation -

This is a company that generates $200 billion in revenues per year, and trading at a total valuation of $230 billion - which makes it very attractive.

Share price is down almost 3% over the past 30 days.

Exxon has almost no short activity with 0.8% (less than 1 percent) which is very indicative of market sentiment that it is very reasonably priced.

This is also a dividend company with an anticipated yield of 6.27% this year.

Total assets are above 300 billion with only 170 billion in liabilities, which is a great ratio.

This is not a growth company, but rather a value play. Exxon Mobil is not focused on growth but rather on generating shareholder returns and creating value, which is exactly what you want during inflationary times.

The main risk is oil prices, as this company completely depends on prices remaining in the 70s per barrel to keep these levels of revenue, but if you feel inflation and economic growth are about to increase, oil prices represent a good exposure to this scenario and are expected to rise.

Tom