This week’s Alpha Algorithm has identified ExxonMobil Corp. (XOM), the oil giant benefiting from the rebound in oil prices.

Founded in 1870 and headquartered in Irving, Texas, ExxonMobil Corporation is the world’s largest publicly traded international energy company. Its principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crude oil and natural gas, natural gas and petroleum products. ExxonMobil is also one of the largest refiners and marketers of petroleum products.

10 Top Investment Strategies Betting on ExxonMobil Corp. (XOM)

  1. Large-Cap Alpha Core

The stock is one of a tiered equal-weighted index of large-cap stocks selected from the S&P 500 that is expected to outperform the broader large-cap space, based on an intricate methodology of ranking stocks according to their recent performance.

  1. High-Quality Stock

The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.

  1. Goldman Sachs’ Active Beta

The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

  1. Value Tilt

Selected using a multi-factor modeling approach, the company is a value stock designed to enhance portfolio risk/return characteristics.

  1. Low Interest-Rate Sensitivity

The stock is a large-cap U.S. stock selected for its low volatility and positive price performance in a rising-interest-rate environment.

  1. Dividend Aristocrat

The stock has increased dividends for at least 25 consecutive years.

  1. Dividend Dog

It is one of the five highest-yielding stocks among each of the 10 sectors tracked in the S&P 500.

  1. Insider and Analyst Sentiment

One of 100 stocks chosen from the S&P 1,500, based on positive sentiment among those “insiders” closest to a company’s financials and business prospects, such as top management, directors, large institutional holders and the Wall Street research analysts who follow the company

  1. Insider Sentiment

One of 100 equally weighted, U.S.-listed, large- and mid-cap stocks that are chosen based on trading in a company’s stock by corporate insiders, price momentum and trailing 12-month volatility. Specifically, it looks at the increase in insider holdings.

  1. Fundamental Strength

This is a top U.S. stock based on fundamentals measured by book value, cash flow, sales and dividends.


Buy ExxonMobil (XOM) at market today. Give this position a 10% trailing stop. If you want to play the options, buy the ExxonMobil (XOM) March $85 calls (XOM180316C00085000), which last traded at $2.39 and expire on March 16. As always, if any recommended position stops out, sell the related options as soon as possible.

Important Note

Finally, I am pursuing new opportunities, and this will be the last issue of Alpha Algorithm. Your publisher, Eagle Financial Publications, will update you with further information about how your subscription will be fulfilled. To protect your remaining positions but still benefit from additional share-price appreciation, I recommend that you set a 10% trailing stop on all positions and sell any related options if a stock hits or falls below its stop price.

Portfolio Update



Nicholas Vardy

Nicholas A. Vardy