Exxon Mobil Has Nearly Doubled the S&P 500 Since Dow Removal
Since its removal from the Dow Jones Industrial Average in 2020, Exxon Mobil (XOM) has outperformed the S&P 500 by nearly double. The strong performance is attributed to a transformation led by CEO Darren Woods starting in 2018, focusing on cost cuts and capital discipline.
Key Numbers
Ten years ago, Exxon Mobil (NYSE:XOM) was an aging supermajor coasting on legacy assets and a sleepy dividend. The decade that followed was brutal before it got good. CEO Darren Woods kicked off a transformation in 2018 built around advantaged barrels, cost cuts, and capital discipline. Then came the pandemic, which gutted crude demand and ...
Details
In August 2020, Exxon Mobil was removed from the Dow Jones Industrial Average, replaced by Salesforce. The move was a shock for the company, long a symbol of American industrial might. Since then, however, Exxon's stock has beaten the S&P 500 by nearly double, according to 24/7 Wall St.
Context
Woods' strategy focused on improving efficiency, cutting costs, and concentrating on high-quality assets. The company also benefited from the post-pandemic rise in oil prices.
What This Means for Investors
Exxon's story shows that traditional companies can reinvent themselves even in the face of major challenges. However, investors should monitor energy sector developments and future regulatory changes.
Frequently Asked Questions
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