The effects of coronavirus pandemic are well evident on so many sectors that have undergone the losses which they are still trying to repair. The pandemic hit the companies in the oil and gas sector quite hard and the chances of survival of the companies which are running at a small scale are less. The well-established companies of this sector are facing difficulties to re-establish themselves again and cover up the losses that they unexpectedly had to suffer because of the coronavirus pandemic.
Can a Successful and Effective Vaccine Bring about a Change?
An effective vaccine against the coronavirus can be a game-changer for many of the companies which underwent losses but the things in the case of the oil and gas firms are not the same. A vaccine will bring about a slight change and things may restart a little, but other dangers are haunting this industry.
The inclination of the governments and the public is now going towards the natural sources of energy. The pollution and global warming caused due to the emissions of fossil fuel and crude oil products are significant. Moreover, these sources are expected to get exhausted shortly and that is an even greater threat. Due to these reasons, the focus is majorly now on the development of renewable sources of energy.
This is a very big minus point for the oil and gas industry as a whole and for the heavy-duty companies which work under this sector. Hence, Exxon Mobil is currently in a very dicey situation when it comes to the development and the stocks of the company.
Exxon Mobil Corporation (NYSE: XOM)
- 52 Week Range: $30.11 – $71.37
- Average Volume: 30,380,277
- Market Capital: $175.894B
- Forward Dividend and Yield: 3.48 (8.37%)
What do the experts say in the case of the Exxon Mobil Stock?
Just like Exxon, Chevron is a big name in this industry of oil and gas and if we analyze the present situation, then Chevron has better chances ahead instead of Exxon. As per the shareholders and analysts, the stock of this company is currently not a good buy. There are few chances that the company will make good progress. The income of the company is unstable. The situation of the coronavirus that will be witnessed ahead is unpredictable.
Till the company does not stabilize well and gains properly, its stock is not a safe choice for buying. Investors may consider Chevron as a better buy than Exxon yet, the stocks of the companies of this industry are somewhat risky for investing, especially a long term investment. The factors which will affect the growth of this sector are already mentioned above and the investors have to watch out for the same. If the situation of the company improves with time, then it might become a profitable investment but shortly, this does not seem like a possibility.
