Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
BofA analysts recently noted that the company’s latest 8-K points to another sequential earnings jump in the first quarter ($2.18 per share versus the prior $2.15) on better upstream profitability. First-quarter cash flow estimate now stands at $15.3b billion, versus the prior $14. billion, with organic free cash flow in excess of $10.5 billion, which is the highest since the third quarter of 2008. They also feel that with debt targets reached, buybacks are set to accelerate alongside peer-leading (and visible) free-cash-flow growth.
Shareholders currently receive a 4.13% dividend. The company is expected to lift the dividend to $0.92 a share from $0.88. The BofA Securities price target on Exxon Mobil stock is $120. The consensus target of $92.47 is closer to Friday’s close at $87.03 per share.
Marathon Petroleum
This is a solid way for more conservative investors to play the energy sector. Marathon Oil Corp. (NYSE: MRO) is one of the largest independent petroleum refining and marketing companies in the United States. Until recently, the company operated retail sites under the Marathon and Speedway brands. In addition, Marathon Petroleum operates a logistics network of pipelines, barges, trucks and terminals that store and transport crude and products.
The company sold the Speedway convenience stores to 7-Eleven in a $21 billion deal that closed last May. Activist investors had persuaded Marathon’s directors to reorganize the company.
Investors currently receive a 1.12% dividend. That dividend is expected to rise to $0.08 a share from $0.07. Along with its Buy rating, Truist Securities has the highest target price on Wall Street. That $41 is well above the $29.41 consensus target on Marathon Petroleum stock. The closing share price on Friday was $25.00, which was down 4% for the day.
Parker-Hannifin
This top industrial company looks poised for a solid 2022. Parker-Hannifin Inc. (NYSE: PH) manufactures and sells motion and control technologies and systems for various mobile, industrial and aerospace markets worldwide.
The Diversified Industrial segment provides pneumatic, fluidic and electromechanical components and systems, as well as filters, systems and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water and other liquids and gases.
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