Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

1 Stock To Buy, 1 To Dump When Markets Open: Exxon Mobil, Visa

By Investing.com (Jesse Cohen/Investing.com)Stock MarketsMar 06, 2022 06:48AM ET
www.investing.com/analysis/1-stock-to-buy-1-to-dump-when-markets-open-exxon-mobil-visa-200619379
1 Stock To Buy, 1 To Dump When Markets Open: Exxon Mobil, Visa
By Investing.com (Jesse Cohen/Investing.com)   |  Mar 06, 2022 06:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
US500
+0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ORCL
+0.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XOM
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CPB
+0.61%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
V
+0.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Stocks on Wall Street ended sharply lower on Friday, with the Dow Jones Industrial Average notching its fourth losing week in a row, amid escalating tensions related to the Russia-Ukraine crisis.

DJI Daily Chart
DJI Daily Chart

The week ahead is expected to be another busy one as investors continue to monitor geopolitical developments between Russia, Ukraine, and Western powers.

In addition, important economic data, including the latest consumer price index report on inflation for February will be released, which could show the highest reading since 1981.

Notable companies will also be presenting their latest quarterly earnings, including DocuSign (NASDAQ:DOCU), CrowdStrike (NASDAQ:CRWD), Oracle (NYSE:ORCL), Rivian Automotive (NASDAQ:RIVN), and Campbell Soup (NYSE:CPB).

Regardless of which direction the market goes, below we highlight one stock likely to be in demand and another which could see further downside.

Remember though, our timeframe is just for the upcoming week.

Stock To Buy: Exxon Mobil 

Exxon Mobil (NYSE:XOM)—which saw its shares spike to their highest level in almost four years on Friday—could see further gains in the coming week as investors continue to pile into the booming energy space amid the furious rally in oil prices.

XOM has gotten off to one of its best starts to a year in history, ending Friday’s session at $84.09, the highest since October 2018. At current levels, the Irving, Texas-based oil-and-gas giant has a market cap of $356 billion.

XOM Daily Chart
XOM Daily Chart

Year-to-date, Exxon shares have climbed 37.4%, easily outperforming the S&P 500’s 9% decline over the same timeframe, as the energy major benefits from higher commodity prices, improving global demand, and streamlined operations.

Crude futures enjoyed their biggest weekly surge since mid-2020 last week, with U.S. WTI and Brent, the global benchmark, soaring 26% and 21%, respectively, to levels not seen since 2008.

WTI Weekly Chart
WTI Weekly Chart

Despite sizable gains, we believe there is still room to march higher due to mounting fears that the U.S. and its allies will slap fresh sanctions on Russia’s energy sector, resulting in a severe disruption to global supplies.

If the West does in fact ban Russian oil, crude prices could skyrocket to record highs above $150 per barrel, according to industry experts and analysts.

The White House warned on Friday that President Joe Biden is considering cutting U.S. imports of Russian oil, as lawmakers fast-track a bill that would ban Russian energy imports entirely.

Russia exports roughly 5 million barrels of oil per day, making it the world’s second-largest crude exporter after Saudi Arabia.

Stock To Dump: Visa 

Coming off its biggest weekly decline since March 2020, Visa's (NYSE:V) stock looks set to suffer another difficult week as investors fret about the negative impact of recent developments hobbling one of the world’s largest payment processing firms.

In a worrying turn of events, Visa announced on Saturday that it was suspending its operations in Russia due to Moscow’s ongoing invasion of Ukraine.

The U.S. payments firm said all transactions initiated with Visa credit and debit cards issued in Russia will no longer work outside the country. It also added that any Visa cards issued outside of Russia will no longer work within Russian borders as well.

"We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia," Al Kelly, chief executive officer of Visa, said in a statement.

In response, several Russian banks, including Sberbank (OTC:SBRCY)—which is Russia's biggest lender—said they would soon start issuing cards using the Chinese UnionPay card operator's system coupled with Russia's own Mir network.

That does not bode well for Visa, which had a significant presence in Russia in 2021. Nearly $1.2 billion, or about 4%, of Visa’s total net revenue last year was derived from business conducted within, into, and out of Russia.

V Daily Chart
V Daily Chart

Shares of Visa plunged 8.7% last week, closing Friday’s session at a more than one-month low of $200.29, earning the Foster City, California-based corporation a valuation of $420.2 billion. At current levels, Visa is now just 5% away from reaching a new 52-week low.

Another headwind currently plaguing the financial services provider are worries over slowing growth at its payments network as consumers both domestically and internationally cut back on credit-card usage and spending amid soaring inflation.

V DMAs
V DMAs

From a technical standpoint, Visa stock has fallen below key levels in recent sessions—including its 50-day, 100-day, and 200-day moving averages—signaling more selling pressure ahead.

1 Stock To Buy, 1 To Dump When Markets Open: Exxon Mobil, Visa
 

Related Articles

1 Stock To Buy, 1 To Dump When Markets Open: Exxon Mobil, Visa

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Joseph Obrzut
jzut Mar 07, 2022 5:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah. Buy XOM when it's in the upper right corner. If it wasn't for Putin and oil it wouldn't be there. You buy it at 36-37 after it came off the bottom in Dec 2020.
Don Vo
Don Vo Mar 06, 2022 9:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Every stock will down to one soon
Ray Steed
Ray Steed Mar 06, 2022 8:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nope. dvn, sq
Jim German
Jim German Mar 06, 2022 7:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow… How abvious ????
Mayerlin Tapia
Mayerlin Tapia Mar 06, 2022 11:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
interesting… what is your opinion regarding the meeting of the United States government with the government of Venezuela, regarding the purchase of oil? Do you think this would change this market appreciation? that is, it would lower the cost of oil in the USA
Roberto Baggio
Roberto Baggio Mar 06, 2022 11:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
venezuela sells oil to europe. good for venezuela good for europe. goodbye russia. china russia and india saved it. but russia is weak now, no value for venezuela
Mohd Izhar Muslim
Mohd Izhar Muslim Mar 06, 2022 8:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you for the article
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email