Chevron Corporation: Analyzing Current Performance and Future Prospects
Chevron Corporation (CVX), based in San Ramon, California, operates in both energy and chemicals. With a significant market cap of $279 billion, CVX is involved in producing, transporting, refining, and distributing crude oil and natural gas across the globe.
As a “mega-cap stock,” CVX exceeds the $200 billion valuation, indicating its power and status within the integrated oil and gas sector. The company’s production capabilities are impressive, averaging 3.1 million barrels of oil equivalent per day and holding 11.1 billion barrels in reserves. This robust output and strategic operations spanning from North America to Australia support a stable supply chain while lessening risks associated with specific regions.
However, despite these strengths, Chevron has experienced challenges recently. The stock price fell by 7.1% from its 52-week high of $167.11 reached on April 29. In the last three months, CVX shares climbed 12%, but this growth is below the Nasdaq Composite, which saw a 19% increase during the same period.
On a year-to-date basis, Chevron’s shares rose 4.1%, with an 8.9% increase over the past 52 weeks. In contrast, the Nasdaq Composite boasts year-to-date gains of 32.3% and 40.4% for the past year.
Looking at moving averages, CVX has been trading above its 50-day average since late September and has also consistently surpassed its 200-day average since early November.
CVX’s recent lagging may be attributed to difficulties related to its merger with Hess, facing pushback from rivals.
On November 1, CVX shares gained over 2% after the third-quarter financial results were released. The company reported an adjusted EPS of $2.51, surpassing the expected $2.47. Its revenue of $50.7 billion also exceeded analysts’ forecasts of $49.9 billion. Furthermore, Chevron plans to finalize asset sales in Canada, Congo, and Alaska in the fourth quarter, aiming to divest $10 to $15 billion of additional assets by 2028.
In comparison, Exxon Mobil Corporation (XOM) has shown stronger performance, increasing 13.6% year-to-date and achieving 14.6% gains over the past year.
Despite recent challenges, Wall Street analysts remain optimistic about Chevron’s prospects. The stock holds a consensus “Strong Buy” rating from 22 analysts, with a mean price target of $172.86, suggesting a potential upside of 11.4% from its current price level.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are intended solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
