Top 5 All-Around-Value Stocks for Dec. 31

ExxonMobil (XOM Quote) is a publicly traded international oil and gas company. The company's primary business involves the exploration for and production of crude oil and natural gas, the manufacture of petroleum products, and the transportation and sale of crude oil, natural gas, and petroleum products. The company, along with its divisions and affiliates, operates and markets products in the United States and about 200 other countries and territories. ExxonMobil explores for oil and natural gas on six continents. The company also holds interests in electric power generation facilities, and its affiliates conduct extensive research programs in support of all of the company's businesses.

Our buy rating for ExxonMobil has not changed since January 2004. The company's strong revenue and net income growth, along with a largely solid financial position, have contributed to this rating. Although results for the third quarter of fiscal 2008 were impacted by Hurricanes Gustav and Ike in the Gulf of Mexico, the company's revenues rose 34.7% year-over-year in the third quarter of fiscal 2008. Net income rose to a record $14.8 billion, an increase of 57.6% when compared to the same quarter last year. ExxonMobil also reported significant earnings per share (EPS) improvement, continuing a trend of positive EPS growth over the past two years with an increase from $1.70 per share in the third quarter of fiscal 2007 to $2.86 per share in the most recent quarter. One clear sign of strength for this company is the fact that its current return on equity (ROE) exceeded its ROE from the same quarter one year prior, rising from 33.05% to 39.16%. In addition, the company has a very low debt to equity ratio of 0.08, implying that ExxonMobil has successfully managed its debt levels. An adequate quick ratio of 1.09 illustrates the company's ability to avoid short-term cash problems.

Management stated that the company was able to deliver strong financial results despite world financial uncertainty in the third quarter. The company plans to continue with plans for disciplined capital investments in the future, staying consistent with previous guidance of about $25 billion for full year capital and exploration expenditures. Fourth quarter earnings are expected to be reduced due to damage repairs and lower volumes across all business lines as a result of Hurricane Gustav and Ike, although the majority of the company's operations are now back on-line or are in the final stages of start-up. It is important to remember that the company's performance largely depends on the movement of crude oil and natural gas prices, and any adverse pricing changes could therefore negatively impact future results.