[ad_1]
Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the last two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Exxon’s Bumpy Road: One company that has been a great investment in the past two years: oil major Exxon Mobil Corp XOM.
Like many other companies, the COVID-19 pandemic crushed Exxon’s business in 2020. In fact, WTI crude oil futures briefly dropped below zero during the worst of the pandemic sell-off as demand plummeted and oil buyers ran out of storage space.
At the beginning of 2020, Exxon shares were trading at $70.24. By the beginning of March, the stock was down to $52.59 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
When the S&P 500 hit its pandemic bottom on March 23, 2020, Exxon shares traded down to its pandemic low of $30.11. Unfortunately, while the S&P 500 bounced from there, the worst was yet to come for the oil market.
On April 20, 2020, WTI crude oil futures contracts fell below zero per barrel for the first time in history, settling at an unprecedented price of negative $37.63. The May WTO contracts expired the next day, and prices quickly bounced back into positive territory. The following day, Exxon shares briefly dipped below $40 for the last time in the crisis.
By early June 2020, Exxon shares were back above $50 before the rebound rally ran out of steam. By late October 2020, Exxon shares were once again back down to as low as $31.11.
Exxon bounced off those October 2020 lows and the stock quickly became red hot.
Related Link: If You Invested $1,000 In Marathon Oil (MRO) Stock At Its COVID-19 Pandemic Low, Here’s How Much You’d Have Now
Exxon In 2022, Beyond: WTI crude oil prices rallied to new post-pandemic highs above $65/bbl in March 2021, and Exxon shares topped $55 in February 2021. Inflation, global energy shortages and the war in Ukraine pushed crude oil prices as high as $130 in March 2022.
Inflation has weighed on many stocks, but it is good news for stocks in the energy sector like Exxon. In the most recent quarter, Exxon reported 68.9% revenue growth and $17.8 billion in net income.
Exxon shares soared as high as $105.57 in June 2022 before softening oil prices at least temporarily halted the rally.
Related Link: If You Invested $1,000 In BioNano (BNGO) Stock At Its COVID-19 Pandemic Low, Here’s How Much You’d Have Now
Exxon shares have pulled back to around $88.09 and WTI prices have retreated to $81.81, but inflation and energy supply shortages drag on.
Still, investors, who bought Exxon stock the day it hit its 2020 pandemic low and held on have generated some impressive returns at this point. In fact, $1,000 in Exxon stock bought on March 23, 2020, would be worth about $3,177 today, assuming reinvested dividends.
Looking ahead, analysts are expecting Exxon stock to continue to march higher in the next 12 months. The average price target among the 23 analysts covering the stock is $109, suggesting 23.7% upside from current levels.
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.