CA - Chevron: Never Bet Against A Leading Oil Major
2024-06-04 11:30:20 ET
Summary
- Chevron stock has outperformed the S&P 500 recently, even though oil futures fell into a correction.
- Chevron's robust production performance and upbeat outlook have reassured investors of its growth potential.
- A positive outcome in Chevron's arbitration with Exxon on its Hess acquisition could lead to a valuation re-rating.
- CVX stock isn't expensive, and its buying sentiments have remained robust. I explain why CVX is well-positioned to rally further. Read on.
Chevron Stock Outperformed Amid Recent Worries
Chevron Corporation ( CVX ) investors have endured a challenging few weeks as underlying crude oil futures ( CL1:COM ) ( CO1:COM ) have continued to suffer from bearish market sentiments. OPEC+'s extension of its voluntary cuts also sent mixed signals to the market, with plans to "start unwinding output cuts as early as October." As a result, it has justified the caution seen among oil investors as WTI crude oil futures topped in early April 2024. Accordingly, oil futures have declined more than 15% since then, threatening to enter another bear market....
Chevron: Never Bet Against A Leading Oil Major