Royal Dutch Shell Has the Most Potential of Any Big Oil Stock
Last Updated: Aug. 9, 2021 at 8:14 a.m. ET
Of all the Big Oil stocks, Royal Dutch Shell is the one best positioned to deliver a gusher.
The British-Dutch colossus is the most profitable of the major international energy companies, yet it trades at a sharp discount to Exxon Mobil (ticker: XOM) and Chevron (CVX). Shell also offers investors a safe dividend yield of nearly 5%.
“Shell’s shares are materially undervalued based on the company’s industry-leading cash flows and strong franchises in liquefied natural gas, retail, and deep-water drilling,” says Dan Farb, a principal at Mill Pond Capital, a Boston investment firm that holds shares.