Exxon Mobile (XOM) is expected to lead Big Oil stocks higher.
Credit Suisse doesn't think that Big Oil stocks have been benefiting enough from recent dramatic increases in oil prices. Oil prices may be "slipping" back toward $109 per barrel right now, but that doesn't erase the fact that they touched $111 per barrel yesterday, and that they are likely to remain solidly over $100 per barrel in the near term.
So, why is Exxon (XOM) stock still below $90 a share? That's something Credit Suisse can't figure out. But Reuters reports that Credit Suisse thinks that there is a change in the air:
'We think this will change in the near term, pushing up the relative performance on Big Oil versus the S&P 500, and Exxon Mobil is our favorite U.S. Big Oil name to play this anticipated re-rating,' the analysts said in a note to investors.
Chevron (CVX), ConocoPhillips (COP) and even BP (BP) may all be poised to benefit, and you could too. Stock prices in general are down, and that includes Big Oil stocks. But if Credit Suisse is right, things should be changing in the next couple of weeks. Big oil stocks generally gain with higher oil prices as they increase gas prices (and profits). If you agree, then now is the time to buy — and take advantage of the current dip in prices.
Disclosure: I do not own Big Oil stocks.