Investing in ExxonMobil Holdings Corporation (XOM): A Case for Long-Term Growth and Returns

Investing in ExxonMobil Holdings Corporation (XOM): A Case for Long-Term Growth and Returns

Tue, September 1, 2026 at 5:33 PM GMT+3 3 min read

First Eagle Investment Management, an investment management company, released its Q2 2026 investor update for "First Eagle Global Fund". The letter can be downloaded here. Easing tensions in the Middle East led to a strong rally in risk markets in Q2. The S&P 500 Index rose 15.2%, while the MSCI EAFE Index gained 10.8%. Growth stocks outperformed, with the MSCI World Growth Index significantly exceeding value returns. A notable shift in U.S. interest rate expectations followed Kevin Warsh's appointment as chair of the Federal Open Market Committee, pushing Treasury yields higher and strengthening the dollar. Despite the optimistic market environment, concerns about fiscal constraints and limited policy flexibility remain. Tighter credit spreads and elevated equity valuations reflect strong demand for financial assets, with household wealth in equities at a post-WWII high. Earnings expectations are buoyant, driven by AI infrastructure developments. Against this backdrop, Global Fund A Shares returned 2.86% in Q2 2026, with emerging markets and developed Europe as the primary contributors. Developed Asia (excluding Japan) was the only detractor, and Japan lagged. Information technology and financials led among equity sectors, while materials and energy detracted. The fund underperformed relative to the MSCI World Index during this period. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, First Eagle Global Fund highlighted ExxonMobil Holdings Corporation (NYSE:XOM). ExxonMobil Holdings Corporation (NYSE:XOM) is a leading US-based crude oil and natural gas exploration and production company. On August 31, 2026, ExxonMobil Holdings Corporation (NYSE:XOM) closed at $160.95 per share. Over the past month, ExxonMobil Holdings Corporation (NYSE:XOM) returned 5.74%, and its shares are up 41.95% over the past year. ExxonMobil Holdings Corporation (NYSE:XOM) has a market capitalization of $661.81 billion.

First Eagle Global Fund stated the following regarding ExxonMobil Holdings Corporation (NYSE:XOM) in its Q2 2026 investor letter:

"Shares of integrated oil and gas giant ExxonMobil Holdings Corporation (NYSE:XOM) traded down alongside easing crude oil prices. Although the company experienced disruptions in its Middle East operations, it reported better-than expected results for its most recent quarter because of improved production from assets in Guyana and the Permian Basin. We continue to view Exxon as a high-quality operator with strong capital discipline, an attractive portfolio of durable assets and a commitment to returning cash to shareholders."

ExxonMobil Holdings Corporation (NYSE:XOM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held ExxonMobil Holdings Corporation (NYSE:XOM) at the end of the second quarter, which was 94 in the previous quarter. While we acknowledge the potential of ExxonMobil Holdings Corporation (NYSE:XOM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed ExxonMobil Holdings Corporation (NYSE:XOM) and highlighted its plan to significantly enhance automation in its operations within the Permian Basin. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.