Up 20% in 12 Months, Is ExxonMobil Really a Buy?
The energy sector is highly cyclical, which is one of the most important things that investors need to understand before jumping into it. ExxonMobil (NYSE: XOM) is a giant in the industry, but it isn't immune to the normal ups and downs of energy prices. And that's why the stock's nearly 20% rise over the past year is something to consider before buying it today.
Exxon is one of a relatively small number of energy companies known as integrated energy giants. There are multiple reasons for this, including the company's massive $430 billion market cap. But to put it simply, its operations span the globe and run through the entire value chain of the energy sector, from production to processing. The stock is, generally speaking, a fairly conservative way to invest in the sector, given its inherent industry diversification.
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Source Fool.com
