The stock market is discounting a chronic winner. It’s survived 11 recessions, including the Great Depression.
But suddenly, the world thinks its days are numbered.
And that makes it a great opportunity for us.
In fact, there’s a chance to make 35% by July on this stock that fair-weather investors are avoiding.
Let me show you why I’m so excited about rooting for this stock market underdog.
This Once-Favored Mega-Cap Stock Is Now an Underdog
ExxonMobil is a massive energy company. It’s a household name. But few people know its legacy.
Exxon Mobil Corp. (NYSE: XOM) traces its roots back to 1911, when the government broke up John D. Rockefeller’s Standard Oil monopoly. Exxon and Mobil came from two of the companies that emerged from the split. And in 1999, they merged to create the company we know today.
For more than a decade, it reigned as one of the top 10 largest companies on the New York Stock Exchange.
But recently, investors have lost interest in energy companies.
Investors are looking elsewhere. Alternative energy stocks and the electrification of America have captured their attention.
This week, Morgan Stanley downgraded ExxonMobil’s stock from “Neutral” to “Sell.” It says the company’s shrinking cash flows limit its ability to capitalize on its projects and goals.
And ExxonMobil’s stock reached a low last seen in September 2010.
That’s from lower oil prices. But the energy market is cyclical. Cash flow may be lower now, but ExxonMobil has seen worse. And it has always come back.
Shares are down 14% in the last four weeks. It’s 42% below its all-time high.
Setting Apart the Winners
In my recent video, I dig into the U.S. oil production numbers to get to the root of why investors will turn bullish on Exxon.
In 2015, ExxonMobil faced cash flow pressures like it does today. And shares went on to climb 30% in the following six months!
Wall Street is dumping XOM shares like it’s an underdog.
But lower energy prices are a temporary issue.
Investors have lost confidence in this stock.
Confidence cycles up and down in short- and long-term time frames. These cycles turn when investors gain or lose confidence in the prevailing trend.
To pinpoint these turns, I developed Apex Movement Patterns (AMPs).
AMPs measure price action. Since human emotion determines prices, AMPs reveal confidence cycles and help predict turning points.
The AMP on ExxonMobil’s decline tells us investors will regain confidence soon and the stock will turn higher.
Investors who know how to recognize a winner can see strength where the crowd sees weakness.
The AMPs give me a price target of $82 per share by July. That’s 35% from shares at last glance.
You want to have your money on underdogs like Exxon Mobil before the crowd catches on and shares run up.
If you’re not comfortable blindly managing trades from start to finish, there’s another way to put my predictions to work.
I teamed up with Matt Badiali in February 2018. We developed a system to pinpoint double- and triple-digit gain opportunities from the market’s ups and downs.
It’s the core of our Apex Profit Alert trading research service.
In it, we provide our market research and insights, along with explicit entry and exit instructions on our recommendations. This lets you cut down on the guesswork and have the chance to make money with our predictions.
Click here to see how you can subscribe to our service, potentially increase your gains — and make the most of your money.
Good investing,
Editor, Apex Profit Alert
