Oil prices extended declines on Wednesday amid a persistent OPEC+ stalemate on easing production cuts. Talks broke last week with Saudi Arabia and the UAE disagreeing on the way forward. The decline in oil prices has pushed the stock prices of oil exploration and production companies like Exxon Mobil Corp (NYSE:XOM) lower.
Reports indicate that the UAE wants out of the OPEC+ group to increase day output by more than 4 million barrels. The middle-eastern nation intends to sell as much inventory as possible while prices are high. Russia is reportedly trying to get the Saudis and the UAE to agree and solve the stalemate.
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From an optimistic view, the pullback in XOM stock price could be an opportunity to invest in one of the best dividend-paying energy stocks in the market.
Why buy Exxon Mobil shares now?
Exxon Mobil shares trade at an exciting forward P/E ratio of just 13.38, making the stock a compelling investment opportunity. Although analysts expect earnings to plunge significantly this year, XOM’s EPS will bounce back next year with an annual growth of about 20%.
Furthermore, Exxon Mobile investors will still benefit from the company’s high dividend yield of about 5.75%. And as oil prices rebound when the Saudis and the UAE agree, the XOM stock price will bounce back.
Therefore, Exxon Mobil’s recent pullback in the stock price presents an attractive investment opportunity in one of the best energy dividend-paying stocks in the market.
Technical overview: my XOM stock price prediction for Q3 2021
Technically, Exxon Mobil’s share price appears to have pulled back to move closer to the 100-day moving average. It is also closer to reaching oversold conditions in the 14-day RSI. The stock price is now pinned to the trendline support in the daily chart.
All these factors create an excellent opportunity for a rebound. Therefore, investors can target rebound profits at approximately $62.52 or higher at $64.84. The key support levels are $57.97 and $55.53.
Bottom line: Exxon Mobil stock looks like an exciting buy after a pullback
In summary, Exxon Mobil’s latest pullback presents an attractive opportunity to buy XOM shares. The stock price retains a bullish bias in an ascending wedge formation.
Therefore, now could be a great time to add XOM to your portfolio before oil prices bounce back, pushing the stock price higher.
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