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.
He likes the oil space; it's cheap. He prefers Exxon Mobil, but CVX is cheaper and a good stock. $127.80 is his target price, a modest upside. Good 4% dividend.
He likes this stock. His model price is $140, 14% higher than the current price. The dividend is covered by the earnings. He expects it to rise with the market through year-end, if the market rises. However, he thinks there is better value elsewhere.
(A Top Pick September 5/17 Up 17%) Investors are probably liking this better than Exxon (XOM-N), due to its cost cutting measures and development of LNG in Australia.
COP-N vs. CVX-N. He prefers COP-N. It has underperformed. It is more in the E&P space and did some divestitures recently. They are in a great spot. There is nothing wrong with CVX-N but it will underperform.
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
Is Chevron Texaco a buy or a sell?
12 expert ratings on Chevron Texaco (CVX) in the last 12 months: 7 Buy, 1 Hold, 4 Sell. Latest rating: TOP PICK by The Panic-Proof Portfolio (Stockchase Research) on Jul 15, 2021. Read the latest stock experts' ratings for Chevron Texaco.
Is Chevron Texaco a good investment or a top pick?