Exxon is trading at ‘extremely cheap’ levels right now, says investor Stephanie Link
(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day) Investors are watching the trend in small caps and value stocks and how the Federal Reserve rate cut last week could impact that trade. Worldwide Exchange word of the day: Confidence Stephanie Link of Hightower said she’s constructive about the market, but still expects to see some volatility. The investor said she has confidence the Fed is engineering a soft landing and that corporate earnings are going to be better than expected. “I don’t think we are done with the volatility into the elections,” Link added. “Any weakness though, I would be a buyer and that is because growth in the economy is better than expected.” Investing in small caps Reanne Mitrione of the Callan Family Office said the outperformance of small cap and growth stocks is a trend she expects to continue. “Since July 10 th there is about a 10% difference between growth and value indexes…with rates coming down small caps are poised to benefit the most with more debt on the balance sheet and half that debt being a floating rate,” Mitrione said on Worldwide Exchange. Worldwide Exchange pick: Exxon Link says Exxon (XOM) is currently trading at an attractive entry point at 14-times forward earnings. “The stock is extremely cheap… its historical average is about 20-times,” Link said. Link said: “And this company just made an acquisition of Pioneer (Natural Resources) and it is going to triple their production on the E & P (Exploration and Production) side. And they have a goal to grow 10% CAGR by 2027. We also have a couple of catalysts, December 11 they have an analyst meeting. And next year you have a bunch of new projects starting up which should lead to above average growth. XOM YTD mountain Exxon YTD
