The entire energy sector is going through a fierce sell-off due to the pandemic, in contrast to the rest of the market, which is hovering around its all-time highs. In such sell-offs, the solid companies are usually punished along with the weak ones. This is the case for Total (TOT), which has plunged 38% this year. Total is much more resilient than the other oil majors in the ongoing downturn and thus it will highly reward investors when the pandemic subsides.
Royal Dutch Shell (NYSE:RDS.A) (RDS.B) and BP (BP) have plunged much more than Total, to their 25-year lows, while Exxon Mobil (XOM) has plunged to its 17-year lows. Consequently, these oil majors may offer greater returns if the energy market recovers strongly from the pandemic. However, there are good reasons behind their significant underperformance compared to Total. The latter is much more resilient at the suppressed oil prices prevailing