(A Top Pick Dec 21/21, Up 12.6%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with CVX is progressing well and has achieved our $130 objective. To remain disciplined, we recommend covering half the position and trailing up the stop (from$101) to $115.
Stockchase Research Editor: Michael O'Reilly With oil prices remaining above $65 and the threat of inflation returning post-pandemic, we reiterate CVX as a TOP PICK. Recently reported earnings beat analyst expectations by 33%. The company is a dividend aristocrat, increasing the dividend for the past 33 consecutive years. Next year’s projected earnings place the dividend payout ratio under 65% of cash flow. We recommend trailing up the stop to $101, looking to achieve $130 – upside over 12%. Yield 4.72% (Analysts’ price target is $129.55)
The best large American integrated oil company, with exposure to refining and retail. It pays a 4.6% dividend yield and is buying back shares. It reported a blow-out quarter in late October. It's an oil company trying to be more environmentally friendly by spending $10 billion in capital investments through 2028.
He just bought it. Oil is uninvestable, but you can trade it. Like this. Chevron is getting into carbon capture, making ESG strides. Oil will keep moving higher though eventually will return to Earth.
It says it's getting aggressive about reducing its carbon footprint, including investing $10 billion through 2028 in lower-carbon projects. They announced these plans at yesterday's shareholders meeting.
They report Friday. Keep an open mind. The major oils are starting to make a serious effort to offset the damage of oil and shrink their large carbon footprints. This may make ESG money managers interested in buying their stock.
Stockchase Research Editor: Michael O'Reilly A return to oil prices above $70 and the threat of inflation returning post-pandemic are two big reasons to own CVX. The company is a dividend aristocrat, increasing the dividend for the past 34 consecutive years. Next year’s projected earnings place the dividend payout ratio at 76% of cash flow. We would buy this with a stop loss at $80, looking to achieve $123 – upside over 20%. Yield 5.11% (Analysts’ price target is $121.93)
How to play the U.S. reopening trade Energy. There's a lack of investment in fossil fuels and even renewables. The street has underestimated energy. Brent oil will stay north of $65 as the price of gas--and margin--will remain high. Buy oil and oil services.
It reports Friday. It could surprise to the upside. He expects the CEO to talk a lot about how they're cutting carbon emissions. Yes, even the oil companies have to care about the environment. Will they conserve or buyback shares and raise dividends? Oil prices are up and and costs down, so this could surprise to the upside.
Energy seeing a surprise rally now. However, he sees oil's long-term prospects as grim. He would buy only two oil stocks, including Chevron, the top of class. It has held up surprisingly well during this pandemic and pays a safe dividend of 5.7%. The only problem is that this is up 35% in the past 6 weeks.
Oil Companies. The war between Saudi Arabia and Russia may be a concerted effort to put marginal producers out of business. It is an unpredictable battle.
Well-run. Disciplined in capital allocation, like stepping out of the bidding for a company when a certain price was reached. They had the discipline to pull out. But the energy space is challenged.
Chevron Texaco is a American stock, trading under the symbol CVX (previously CVX-N on Stockchase) on the New York Stock Exchange (CVX). It is usually referred to as NYSE:CVX or CVX