Chevron Corporation (CVX), headquartered in San Ramon, California, is one of the world's leading integrated energy companies. With a market cap of $272.67 billion, Chevron plays a crucial role in the global energy sector by providing a comprehensive range of services, including the exploration, production, refining, and marketing of oil, natural gas, and other energy products.
Companies valued at $200 billion or more are generally considered "mega-cap" stocks, and Chevron falls into this category, reflecting its significant scale, stability, and influence in the energy sector. As one of the world's leading integrated energy companies, Chevron exemplifies the strength and resilience of a mega-cap company, supported by its extensive global operations, consistent financial performance, and dedication to advancing growth and innovation in the energy industry.
CVX shares are trading 13.8% below their 52-week high of $171.70, which they hit on Sept. 28, 2023. CVX has declined 6.5% over the past three months, underperforming the broader S&P 500 Index ($SPX), which has gained 7.9% over the same time frame.
Longer term, CVX is down marginally on a YTD basis, and the shares have declined 7.5% over the past 52 weeks. In comparison, the SPX has gained 18.4% in 2024 and rallied 25.6% over the past year.
To confirm the recent bearish price trend, CVX has been trading below its 50-day and 200-day moving average since early August.
On Aug. 2, Chevron closed down over 2% after reporting a Q2 adjusted EPS of $2.55, missing the consensus estimate of $2.93. CVX stock fell by 4.9% on Aug. 1, its largest decline since October, due to new arbitration claims from Exxon Mobil Corporation (XOM) and CNOOC Ltd challenging Chevron’s $53 billion merger with Hess Corporation (HES). This added uncertainty around the deal was crucial for Chevron’s stake in a Guyana oil joint venture, which has unsettled investors.
Highlighting the contrast in performance, CVX's competitor, Exxon Mobil Corporation (XOM), has significantly outperformed the stock. XOM has gained 18% on a YTD basis.
Analysts are moderately optimistic about CVX's prospects despite the weak performance of the price. The stock has a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target of $176 reflects a 19% premium over current levels.
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