Stocks to Buy After a Crash: Exxon Mobil (XOM)
Exxon Mobil (XOM) is what I call a “forever hold” stock. As I’ve written before, the world will always need oil, and XOM is the world-class operation in this sector. (Of course, it doesn’t hurt that it’s also deeply entrenched in natural gas, now, too.)
Exxon’s earnings can vary for many reasons, so I’ve always valued XOM stock on an EV/EBITDA ratio. It presently sits at 6.89. My historical buy-in for XOM stock has always been an EV-EBITDA ratio of 5.5, give or take a bit. Enterprise value is roughly equivalent to market cap with XOM, so that means we want to see about a 20% decline in market cap, which means a 20% decline in price.
Grab XOM stock in the mid-$80s.