Seeking Alpha

Swap out Exxon for ConocoPhillips, Imperial Oil or Suncor, Barclays says

  • Exxon Mobil (XOM -1.2%) is downgraded to Underweight from Equal Weight at Barclays, primarily due to its relative valuation in the belief that potential upside is limited compared to peers.
  • XOM will continue to face relative headwinds concerning the lack of meaningful near-term production growth and the likelihood of a relatively steady high oil price environment, Barclays believes.
  • The firm recommends switching out of XOM to ConocoPhillips (COP -0.3%), Imperial Oil (IMO -1.3%) or Suncor (SU -0.3%).
  • Barclays also cuts Cenovus Energy (CVE -1.7%) to Equal Weight from Overweight, seeing operating issues at Foster Creek and Pelican Lake remaining a drag on shares over the next several quarters (
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Comments (18)
  • SteveTheHawk
    , contributor
    Comments (1903) | Send Message
    Well, let us hope that Barclays is correct. I would love to have XOM drop about $10 in price. I need some more in my portfolio.
    25 Jul 2014, 04:03 PM Reply Like
  • Bob Carl
    , contributor
    Comments (269) | Send Message
    I am sure Paul Cheng has much more insight into the integrated petroleum industry than do the managers of Exxon Mobil.


    I too would like another buying opportunity.
    25 Jul 2014, 04:08 PM Reply Like
  • maybenot
    , contributor
    Comments (5379) | Send Message
    "Exxon...potential upside is limited compared to peers."


    Yeah, seems that is often true for XOM. But their potential for downside is limited compared to peers.


    Long XOM
    25 Jul 2014, 05:02 PM Reply Like
  • xomstock
    , contributor
    Comments (322) | Send Message
    Great reply!
    25 Jul 2014, 06:53 PM Reply Like
  • osooro
    , contributor
    Comments (86) | Send Message
    I already own COP, as well as XOM, so I plan to sit tight. I also own SU, and I will continue to hold onto it for the long term. It is rumored that XOM is going to offer a buy out proposal to ADC, which would boster XOM's earnings if it happens.
    25 Jul 2014, 05:14 PM Reply Like
  • xomstock
    , contributor
    Comments (322) | Send Message
    I also own cop so in the way of ARFCOM get BOTH
    25 Jul 2014, 06:55 PM Reply Like
  • Don317
    , contributor
    Comments (118) | Send Message
    I also own both XOM and COP, but overweight on the former. We're in good company as Buffet bought 40 million shares of XOM last year.
    26 Jul 2014, 10:27 AM Reply Like
  • crazty4tennis
    , contributor
    Comments (961) | Send Message
    Traded XOM for COP. COP pays a generous and consistent dividend compared to XOM. Long COP.
    25 Jul 2014, 05:26 PM Reply Like
  • EmFaust
    , contributor
    Comment (1) | Send Message
    I am new to the market and looking at energy stocks and read up on all the energy stocks for the past six weeks obsessively! My simply humble review - XOM is a giant, a thinker in the now and in the future in its vested interested in the US and abroad. I hope Barclays is correct because, if their stocks does drop, I definitely will be adding more of their stock to my portfolio. (I also read their May 2014 Annual Meeting Report - Fantastic reading).
    25 Jul 2014, 07:42 PM Reply Like
  • RWMostow
    , contributor
    Comments (1610) | Send Message


    Welcome to SA! XOM is my largest position in my portfolio. I will never sell XOM. In my opinion you will never go wrong with holding XOM.


    I also have a large position in RDS, and a medium position in COP.


    Yes, I sleep very well at night, thank you.


    25 Jul 2014, 10:37 PM Reply Like
  • arnoldo nazario sr
    , contributor
    Comments (3) | Send Message
    I GO FOR LONG TERM. (cop) at the end of the doom!
    25 Jul 2014, 09:56 PM Reply Like
  • jazz9650
    , contributor
    Comments (187) | Send Message
    Have owned XOM for years with no intention of selling.Also own CVX and BP and many
    MLP's.I am a long term thinker as is XOM.Talk that they are gearing up for another aquisition--perhaps Anadarko.
    25 Jul 2014, 10:22 PM Reply Like
  • jazz9650
    , contributor
    Comments (187) | Send Message
    Forgot that I also own OXY.
    25 Jul 2014, 10:23 PM Reply Like
  • JMajoris
    , contributor
    Comments (1361) | Send Message
    If you're a long tern investor XOM is a no-brainer - especially on dips. Maybe we'll get lucky and get one now :-)
    26 Jul 2014, 07:04 AM Reply Like
  • Anasazi101
    , contributor
    Comments (1999) | Send Message
    Funny that Buffet, did the opposite a few months back..
    Switched out of some COP and bought more XOM...
    Don't think he really has done any better by his transactions, believe COP has more then outperformed XOM since..
    Warren has also taken more positions I think in the tar sands with Suncor...(NYSE:SU)
    Don't be fooled Buffet still has plenty of COP...They are probably just diversifying more.


    I like the way that Buffet, Munger and BERK invest; And follow some of their ideas.
    But they make some mistakes also, like most investors; And have huge advantages presented to them, that we will never see. Like the saying "money begats money".


    Over the last 5-10 years, we have sold out of SU, STO and CHK and a couple other smaller positions and added more COP, pipeliners and refiners/retail.
    Everyone makes what they hope is the best decision for themselves..
    And looking at possibly going back with some Suncor( again?
    As for the time being, everything is grand.
    Long COP.
    26 Jul 2014, 12:32 PM Reply Like
  • bgold1955
    , contributor
    Comments (2284) | Send Message
    YTD, COP is up 21.61% & XOM is up 1.96%. Not sure what the future will bring but COP has been making the right moves in the Texas oil fields which is what is hot now. Long COP.
    27 Jul 2014, 12:25 PM Reply Like
  • mosheoskar
    , contributor
    Comments (66) | Send Message
    Oxy looks kind of cheap to me
    27 Jul 2014, 03:51 PM Reply Like
  • comsense8
    , contributor
    Comments (21) | Send Message
    I sometimes am amazed by the comments of people writing for various financial newsletters. I am trying to learn from what I read in their publications and when they do not understand the operation of a company like XOM I realize a person could easily make a mistake following their information. I question their goals. I guess very short time.
    1 Aug 2014, 07:39 AM Reply Like
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