Chevron Corporation (CVX), headquartered in San Ramon, California, integrates energy and chemicals operations. With a market cap of $279 billion, the company produces and transports crude oil and natural gas, as well as refines, markets, and distributes fuels worldwide.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and CVX definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the integrated oil & gas industry. One of CVX's key assets is its robust production capabilities and significant reserves. Producing 3.1 million barrels of oil equivalent per day and boasting 11.1 billion barrels in reserves, the company holds a formidable position in the industry. Additionally, CVX's wide-ranging presence across North America to Australia, helps in maintaining a reliable supply chain and reducing exposure to regional risks.
Despite its notable strength, CVX slipped 7.1% from its 52-week high of $167.11, achieved on Apr. 29. Over the past three months, CVX stock gained 12%, underperforming the Nasdaq Composite’s ($NASX)19% gains during the same time frame.
In the longer term, shares of Chevron rose 4.1% on a YTD basis and climbed 8.9% over the past 52 weeks, underperforming NASX’s YTD gains of 32.3% and 40.4% returns over the last year.
To confirm the bullish trend, CVX has traded above its 50-day moving average since late September. It has traded above its 200-day moving average since early November.
CVX's lagging performance can be linked to its struggling merger with Hess, which has faced resistance from competitors.
On Nov. 1, CVX shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $2.51 topped Wall Street expectations of $2.47. The company’s revenue was $50.7 billion, exceeding Wall Street forecasts of $49.9 billion. Moreover, the company expects to close asset sales in Canada, Congo and Alaska in Q4, as part of its plan to divest $10 billion to 15 billion of MORE assets by 2028.
In the competitive arena of integrated oil & gas, Exxon Mobil Corporation (XOM) has taken the lead over CVX, showing resilience with a 13.6% uptick on a YTD basis and solid 14.6% gains over the past 52 weeks.
Wall Street analysts are bullish on CVX’s prospects. The stock has a consensus “Strong Buy” rating from the 22 analysts covering it, and the mean price target of $172.86 suggests a potential upside of 11.4% from current price levels.
