Well, it’s official.

After flirting for weeks, the S&P 500 officially closed into “bear” market territory yesterday.

For context, a bear market is defined as a pullback of at least 20%.

I’m not sure how the 20% mark became the invisible line to determine a “bear market.” There’s not much of a difference between a 19.8% decline compared with a 20.1% decline. It’s just as painful whether it’s officially a bear market or not.

But I digress…

Despite some of the most tumultuous sessions we’ve seen since the initial days of Covid, most of my holdings over at my premium services have held up fairly well. In fact, some have fared downright fantastically.

What’s our secret? Well, it’s really not a secret at all…

If you’re a regular reader, you know that I’ve been heavily recommending oil & gas stocks since January. And even if you don’t then you probably know that most energy stocks weathered the storm better than other sectors. And while I’m not sure if we’ve found a market bottom yet, our holdings don’t care…

At various points, I’ve recommended names like Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Chesapeake Energy (Nasdaq: CHK), Suncor (NYSE: SU), and more…

All of them are hitting new highs.

I have absolutely no problem going “overweight” on energy names right now. After all, it’s just about the only thing that’s working.

And besides, I’ve been very clear about the “boom and bust” nature of oil & gas stocks. There’s nothing wrong with loading up on these names as long as you have a plan and are ready to take your profits and run whenever things begin turning south.

With West Texas Intermediate crude trading for about $120 per barrel, no end in sight to the conflict in Ukraine, and many names in this sector still trading for surprisingly cheap valuations, I don’t think we’re there yet.

So with this in mind, I want to share my latest recommendation with you – which likely doesn’t need much of an introduction…

A No-Brainer Pick For Higher Oil Prices

With a market capitalization of more than $400 billion, it is the largest oil and gas company in the United States and one of the biggest in the world.

I am of course talking about Exxon Mobil (NYSE: XOM). The company was founded by John D. Rockefeller in 1882 (although it was then called Standard Oil).

Exxon is involved in every aspect of the oil and gas industry… From finding and pulling the oil out of the ground to transport to turning oil into useful end products. It has captured the entire life cycle of oil and gas.

And it makes a boatload of money from these various operations…

Last year, it generated $280.5 billion in total revenue — $100 billion more than it produced in 2020. From that, the company generated a profit of $23 billion, or earnings per share of $5.39.

Cash from operations — the lifeblood of any business — came in at $48.1 billion, a massive improvement over the $14.7 billion it made the year before (thank you higher oil prices).

The oil business is a capital-intensive endeavor. But when you generate billions in cash flow you typically have plenty left over to give back to shareholders after capital expenditures, debt payments, and reinvestments back into the business.

That’s exactly what Exxon does…

Last year, the company handed back $14.9 billion to shareholders in the form of dividends. The company will pay an annual dividend of $3.52 per share this year, which gives the stock a nice 3.7% dividend yield.

As you can see, shares are breaking out into new highs, and it has weathered this chaotic market volatility quite well…

Action To Take

Astonishingly, XOM still trades for just 10 times next year’s earnings. That is incredibly cheap, despite the momentum behind shares.

This suggests the stock has plenty more room to run. But energy is in the spotlight right now thanks to higher oil prices. And if the price of oil begins to slide, expect investors to run for the exits.

With that said, the company’s shareholder-friendly policies, along with high oil and gas prices, are a big reason why investors are excited about the stock. I think it’s an easy choice for investors in this market.

As much as I like XOM, my colleague Nathan Slaughter may have found a pick with even more upside…

Located on the West Texas prairie, one tiny company is sitting on the largest oil reserve in history… with enough “black gold” to independently power America for the next 49 years…

You won’t see this covered on the nightly news… But some heavy hitters are making big investments in this area — and this little-known company stands to profit the most. Go here for details now.