114.60 +0.23 (0.20%)
After hours: 7:25PM EST
|Bid||114.23 x 1400|
|Ask||114.59 x 800|
|Day's Range||113.06 - 114.65|
|52 Week Range||100.22 - 132.67|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||15.40|
|Earnings Date||Feb 1, 2019|
|Forward Dividend & Yield||4.48 (3.95%)|
|1y Target Est||138.16|
The "Halftime Report" Traders debate BMO's call to move to the sidelines on KeyCorp, and UBS' bullish call on Chevron.
Chevron Corporation (NYSE: CVX )'s stock has taken a beating in the past year after a rally in oil prices failed to have legs. However, one analyst said the sell-off has finally created a buying opportunity. ...
U.S. refiners are bidding up prices for scarce types of crude oil needed for their most sophisticated plants as the United States reconsiders harsher sanctions on Venezuela that could further reduce imports of the country's oil. Trump administration officials in recent days met with U.S. oil company executives to lay out potential actions in response to the Jan. 10 inauguration of Venezuelan President Nicolas Maduro in an election it considered illegitimate. Among other steps, U.S. officials have recognized the opposition-run Venezuelan congress as the only legitimately elected authority.
The oil giant’s stock is up nearly 5% in 2019, and UBS’s Jon Rigby, who upgraded it to Buy from Neutral on Friday, sees the rally continuing.
Last year was definitely rough for Exxon Mobil (NYSE:XOM), with the shares down about 24% from the high Exxon stock was the sixth worst performer in the Dow. But the drop in XOM was more than just about the market swoon. The oil industry has had to deal with some tough headwinds, such as the volatility of crude prices and a stronger dollar. The result is that there has been drops in many oil companies like Chevron (NYSE:CVX), Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B) and Marathon Oil (NYSE:MRO). Despite all this, might there be an opportunity, such as with Exxon stock? Well, I think so. The valuation on the stock is attractive and so is the dividend. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Rise of Menswear So let's take a deeper look: ### XOM Stock: Integrated Model Over the years, various energy companies have pulled off major restructures. Often this has meant spinning off assets to focus on certain market segments. But Exxon has taken a different approach. That is, the company remains a highly integrated platform, with upstream (oil exploration, extraction and production) and downstream (marketing, refining and retail) assets. There is also a major chemicals business, which posted $3.2 billion in profits during the past nine months. According to Exxon executive Neil Hansen on the last earnings call: "The long-term demand fundamentals remain strong in the Chemical business." For the most part, the integrated model allows for much stability in the overall business. This can certainly be key as energy commodities are susceptible to major swings in prices (which was the case for crude oil during the past six months or so). ### XOM Stock: Investment and Production One of the nagging issues for Exxon stock has been the languishing oil-equivalent production. For example, during the latest quarter there was a 2% decline to 3.8 million barrels per day. Then again, when excluding entitlement factors and divestments, the liquids production was up 6%. Yet Exxon has been investing aggressively in production, and this should lead to better growth in the years ahead. The unconventional production in the Permian has been impressive. There are currently 38 rigs in the Midland and Delaware basins. Meanwhile, Exxon has the benefit of global scale. In the latest quarter, the company had its ninth offshore discovery in Guyana. There has also been an increase in the holdings of pre-salt basins in Brazil as well as the initiation of production in the offshore Kaombo project in Angola. It's also important to keep in mind that Exxon has a strong focus on innovation, which is critical for production. The company spends over $1 billion annually on Research & Development and has more than 19,000 scientists and engineers. As a result, Exxon has been able to create innovations in areas like seismic imaging and modeling. ### XOM Stock: Valuation and Dividend Exxon is a highly efficient organization that generates substantial profits. In Q3, earnings soared by 57% to $6.24 billion. As a result, Exxon has been a solid dividend payer, with the current yield at 4.6%. Consider that the company has increased the payout an average of 6.2% annually for the past 36 years. In other words, Exxon stock is a pretty good bet when it comes to the dividend. The debt levels are also reasonable, at about $40 billion. During the latest quarter, the company reduced it by about $1.2 billion. The debt is actually at the lowest level since 2015. And finally, Exxon stock price is fairly cheap, with the price-to-earnings ratio at about 13X. What's more, Wall Street analysts think XOM stock looks attractive. The average price target is $84, which assumes 18% potential upside from current levels. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post 3 Reasons to Be Bullish Exxon Stock, Even After the Rally appeared first on InvestorPlace.
UBS upgrades Chevron to buy and says shares could rise as much as 21 percent. The oil and gas major is positioned to thrive even during a period of volatile crude prices, the investment banks says. UBS highlights Chevron's "enviable" asset portfolio and its ability to fund both capital expenditures and dividend payments with Brent crude at $50 a barrel.
UBS is upgrading Chevron to buy, saying the oil and gas giant is positioned to weather a sudden drop in crude prices.
Broader Market Supported the Energy PortfolioOil pricesOn January 17, US crude oil March futures fell 0.5% and settled at $52.36 per barrel. Rising oil production in the United States and concerns surrounding global economic growth might have
Chevron: Analysts Expect Strong Q4 Earnings(Continued from Prior Part)Analysts’ recommendations In January, 23 analysts rated Chevron (CVX). Among the analysts, 17 (or 74%) recommended a “buy” or “strong buy,” while six (or
Chevron: Analysts Expect Strong Q4 Earnings(Continued from Prior Part)Implied volatility in ChevronIn this part, we’ll discuss Chevron’s (CVX) stock price forecast range based on its implied volatility for 18 days until its earnings. The price
Investing.com - Oilfield services company Schlumberger (NYSE:SLB) helped rally energy stocks on Frida, after its fourth quarter revenue came in higher than expected and it forecast international growth, even as crude prices have fallen.
Chevron: Analysts Expect Strong Q4 Earnings(Continued from Prior Part)Chevron’s segmental analysis Before we proceed with Chevron’s (CVX) fourth-quarter segmental outlook, we’ll discuss the company’s third-quarter segmental performance.
Analysts Are Divided on ExxonMobil ahead of Its Q4 Results(Continued from Prior Part)ExxonMobil’s moving average trend in the fourth quarterBefore we discuss ExxonMobil’s (XOM) moving averages in January, let’s look at its moving average trend
Dividend investing is back in fashion as wild price swings in the stock market and prolonged uncertainties weigh on investor sentiment. Retail companies enjoyed a strong holiday season but online sales continue to eat into brick-and-mortar shops’ margins. Brazil came third as the nation’s stock market soared to all-time highs on positive momentum. Biotechnology shares marked a major reversal on mergers and encouraging trial data. Small caps closed the list as some investors are adding them back to their portfolios. Check out our previous Trends edition at Trending: Brazil Welcomes New President in Hope of Economic Resurgence.
Investing.com - Bitcoin and other major digital coin prices slipped on Thursday in Asia after trading slightly higher earlier in the day following the news that Belarus is allowing traders to use cryptocurrencies to buy real assets including shares and gold.
Futures in New York staged a mid-afternoon recovery on Wednesday to top $52 a barrel, shrugging off bearish U.S. demand data. Russia will meet its target for curbing output in April as part of its agreement with OPEC, the country’s deputy energy minister told reporters. Whether the OPEC+ alliance can offset surging American output “is absolutely critical to where we go in the next few weeks,” Nick Holmes, a director at Leawood, Kansas-based money manager Tortoise, said in an interview.
Will Shell’s Q4 Earnings Meet Analysts’ Expectations?(Continued from Prior Part)Analysts’ ratings for ShellIn this series, we’ve reviewed Royal Dutch Shell’s (RDS.A) fourth-quarter estimates, earnings prospects by segment, stock returns,
Is the Sharp Rise in Natural Gas Sustainable?Natural gasOn January 15, natural gas February futures fell 2.5% and settled at $3.50 per million British thermal units. On January 16, at 7:37 AM EST, natural gas prices have risen by 1.7 cents from the
German chemicals company BASF SE said Wednesday it has co-founded a global alliance of nearly 30 companies to work on ways to eliminate plastic waste in the environment. The company said the alliance has committed more than $1 billion to the project and aims to invest $1.5 billion in the next five years. BASF Chief Technology Officer Dr. Martin Brudermueller said the company wants to help drive the effort to solve the waste problem, but also to ensure that the benefits of plastics such as convenience are not offset by the waste created when they are not disposed of or recycled in a responsible way. Data from the Ocean Conservancy shows that plastic in the oceans is mostly coming from litter on land and can be traced to ten major rivers, mostly in Asia and Africa. Many flow through regions that are densely populated but with inadequate waste collection and recycling infrastructure. The alliance will help fund projects to promote recycling, educate governments and communities and clean up areas of waste concentration. Other companies in the alliance include Chevron Phillips Chemical Company , ExxonMobil , Mitsui Chemicals and Total.
Will Shell’s Q4 Earnings Meet Analysts’ Expectations?(Continued from Prior Part)Shell’s returnsSince December 10, 2018, Royal Dutch Shell (RDS.A) stock has risen. In this article, we’ll compare Shell’s returns to those of the SPDR S&P
Moody's Investors Service (Moody's) changed Chevron Corporation's (Chevron) rating outlook to positive from stable. Moody's affirmed the Aa2 issuer and senior unsecured ratings of Chevron and its guaranteed subsidiaries, as well as the Prime-1 short term rating. "Chevron's positive outlook reflects our expectation of continued free cash flow generation and debt reduction, strengthening the company's resiliency to volatile oil prices," commented Pete Speer, Moody's Senior Vice President.