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Is Exxon Mobil (XOM) the Best Very Cheap Stock to Buy Right Now?

In This Article:

We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against other best very cheap stocks to buy right now.

The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.

READ ALSO: 10 Best Cheap Technology Stocks To Buy According to Analysts

Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.

If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.

With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.

At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.

Our Methodology

We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Exxon Mobil Corporation (XOM) the Best Very Cheap Stock To Buy Right Now?
Is Exxon Mobil Corporation (XOM) the Best Very Cheap Stock To Buy Right Now?

Aerial view of a major oil rig in the middle of the sea, pumping crude oil.

Exxon Mobil Corporation (NYSE:XOM)

P/E Ratio: 13.74

Average Analysts Upside: 17.91%

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s leading oil and gas companies. It is engaged in the exploration, production, refining, and distribution of petroleum products.