COM - Chevron: Big Yield As Oil Prices Jump To Multi-Month Highs
2024-07-07 06:54:00 ET
Summary
- Chevron has struggled relative to the S&P 500 in 2024 despite rising oil prices, but the stock still sports a favorable valuation.
- Q1 results showed mixed performance, with strong production and cash returns to shareholders.
- Higher oil lately could be a boost to profits in the near term.
- I highlight key price levels to monitor ahead of Chevron's Q2 report due out early next month.
Chevron (CVX), like many Energy-sector stocks, has struggled on a relative basis to the S&P 500 so far in 2024. The group is higher, of course, but momentum has not been consistent with resource stocks over the past handful of months. Among the more recent trends that should be a concern to investors in oil and gas plays is that while WTI and Brent oil have been on the rise, closing last week at their best levels since April, the Energy Select Sector SPDR ETF (XLE) remains below where it traded in early Q2. In fact, XLE is now at fresh relative lows dating back to early March when compared to WTI. I always get concerned when Energy shares lose ground while oil itself rises. ...
Chevron: Big Yield As Oil Prices Jump To Multi-Month Highs