#1 - Chevron (NYSE:CVX)
Energy stocks are notoriously cyclical which makes P/E ratio an important metric for determining which stocks to buy. Chevron (NYSE:CVX) currently offers a P/E ratio of 10.54. That’s higher than the sector average, but it’s lower than the S&P 500 average.
So why buy CVX stock? At the time of this writing, the price of crude oil is under $100, but it’s not expected to remain there. There are a number of reasons to believe the supply and demand dynamics will remain bullish for oil stocks in 2023.
However, like many traditional oil and gas stocks, Chevron is making significant investments into renewable fuels. The company is currently playing a significant role in transporting liquefied natural gas (LNG) to Europe as the continent looks to wean themselves from Russian oil.
Plus, Chevron is a member of the dividend aristocrat club, meaning it has increased its dividend for at least 25 consecutive years. In addition to being a reliable dividend, it also offers an attractive yield of 3.10% and an annual payout of $5.68 per share.
About Chevron
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant.
Read More - Current Price
- $165.82
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $185.85 (12.1% Upside)
