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America’s Biggest Companies Look Reasonably Priced

March 12, 2010

The Biggest Of Them All.  Exxon Mobil (NYSE: XOM) is the largest publicly traded company in the U.S., with a market cap greater than $317 billion. The stock trades with a one-year trailing price/earnings multiple of 16.89 and offers investors a reasonable annual dividend of 2.5%. Year to date the shares are down almost 1.5%. But for those who bought exactly one year ago, the picture is only marginally brighter. XOM shares managed a mere 2.13% rise during that time frame.

Issues

  • Allegations that the Ghana governments blockage of the Kosmos deal caused a significant setback in Exxon Mobil stock prices.


In its latest earnings report, Exxon led the industry with outstanding figures. In 2009, the company earned $19.3 billion and generated cash flows of $28.4 billion, thus allowing the oil giant to pursue ongoing large-scale CAPEX projects. Investors might have been more impressed had the company not been handed a significant setback at about the same time. The Ghanaian government blocked a deal between Exxon Mobil and Kosmos Energy to acquire that country’s Jubilee oil field.

Investopedia

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