This oil stock finally has technical momentum on its side and is 'one of the best in the market,' Josh Brown says

Ritholtz Wealth Management CEO Josh Brown identifies Exxon Mobil (XOM) as a strong buying opportunity, citing improving fundamentals and technical indicators. He highlights the company's significant cost-cutting efforts, totaling $15 billion since 2019 with an additional $6 billion by 2027, and new growth drivers such as the Golden Pass LNG export terminal commencing operations this year. Brown anticipates the stock, currently near $119, to break out past its $125 resistance level after consolidating since 2022, supported by its consistent dividend growth and low market expectations. Analyst consensus from LSEG further reinforces this outlook with an average price target of $129.17, suggesting over 8.5% potential upside.

Analysis

Ritholtz Wealth Management CEO Josh Brown identifies Exxon Mobil (XOM) as a compelling buying opportunity, citing improving fundamentals and aligning technicals. Shares, up over 10% year-to-date, are currently near $119, with Brown anticipating a breakout past the $125 resistance level after consolidating since 2022. This technical setup suggests potential for a sustained upward trend, characteristic of large energy stocks once they establish direction.

Key fundamental drivers include the "Golden Pass" LNG export terminal, a joint venture with QatarEnergy, which is set to commence operations by year-end and is expected to significantly boost future earnings. Exxon has also demonstrated robust cost discipline, achieving $15 billion in structural cost savings since 2019 and targeting an additional $6 billion by 2027. These efficiencies have more than doubled profitability per barrel since 2019, positioning the company for "upside surprise after upside surprise" into 2026.

Downside risk is mitigated by Exxon's consistent dividend yield, which has grown for over 40 years, and what Brown describes as "very low expectations" from the market. Analyst consensus from LSEG supports a positive outlook, with 16 out of 29 analysts rating XOM a "Strong Buy" or "Buy," and a collective price target of $129.17, indicating over 8.5% potential upside from current levels.

Key Decisions for Investors

• Given the bullish analyst sentiment, improving fundamentals driven by cost-cutting, and new growth avenues like the Golden Pass LNG terminal, investors may consider initiating or increasing a long position in XOM.
• Monitor for a sustained break above the $125 resistance level, as this could signal the start of a prolonged upward trend as suggested by technical analysis.
• Evaluate the company's long history of dividend growth as a defensive characteristic and income stream, which should be factored into investment decisions.
• Assess management's guidance for 2026, particularly regarding the impact of cost savings and the Golden Pass LNG terminal's full operational contribution, as these are expected to drive significant earnings improvement.