Exxon stock vs Chevron stock: Goldman Sachs analyst picks a side

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Exxon Mobil Corp (NYSE: XOM) has hardly made any gains over the past three months but a Goldman Sachs analyst remains convinced that the future looks bright for its shareholders.

Oil prices will remain higher for longer

Neil Mehta is bullish on the Exxon stock because he’s convinced that oil prices will remain elevated not just in the near term but actually for several years to come.


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The multinational is expected to earn $3.18 a share in its current financial quarter versus $2.05 per share a year ago. In 2023, he particularly expects “China” to be a positive catalyst for the likes of Exxon Mobil.

China is bouncing around 14.5 million barrels a day of oil demand. It’s on it way up to 15.5 million barrels a day. That increase of a million barrels a day of demand, typically, equates to $15 on price. So that should be a supportive factor.

Exxon stock is a better pick than Chevron

The oil and gas behemoth currently pays a dividend yield of 3.24% (read more) that makes up for another reason to buy Exxon stock.

Interestingly, Goldman Sachs’ Mehta does not like Chevron nearly as much as he does Exxon. Explaining why on CNBC’s “The Exchange”, he said:

Tightness that we’re seeing in refining markets bodes well for XOM, which is legacy standard oil, has 5.0 million barrels a day of refining capacity and has very differentiated upstream projects particularly in Guyana that continues to grow.

Another name in the energy space Neil Mehta currently likes is ConocoPhillips (NYSE: COP) that’s lost more than 10% since early November.