Why this portfolio manager prefers ExxonMobil over First Solar
Today’s Good Buy or Goodbye segment features host Julie Hyman and Ben Cook of the Hennessy Energy Transition Portfolio Manager Fund. Together, the two explore Cook’s best stocks in the energy sector and the best stocks to avoid. Cook names ExxonMobil (XOM) as the best stock for investors, citing several key factors. He praises the company’s integrated business model, saying it has the “flexibility to generate consistent financial results through cycles.” Cook also notes that ExxonMobil has been successful in creating growth opportunities “through acquisitions and drilling operations.” Additionally, he calls the company the “best in the industry” for shareholder returns, highlighting its attractive “cash return profile.” Conversely, Cook advises investors to stay away from First Solar (FSLR), pointing out several risk factors. He notes that the company’s revenue generation is highly dependent on “protective policy measures,” which could change with a presidential administration. Cook also highlighted the challenges of the energy transition, noting the “uneven pace” with reliability and cost being key concerns. Finally, he said First Solar has been negatively affected by the high interest rate environment. For more expert insights and the latest market trends, click here to watch this full episode of Market Domination. This post was written by Angel Smith.