#5 - Chevron (NYSE:CVX)
Chevron Corp. (NYSE: CVX) is not a pure-play infrastructure stock, but oil and gas stocks have several catalysts that point to higher oil prices. Lower interest rates, geopolitical risk in the Middle East, and now the recovery efforts in the southeast United States are all reasons to believe oil is ultimately moving higher.
The case for Chevron specifically is more boring, but significant. The Federal Trade Commission (FTC) cleared Chevron’s merger with Hess Corp. (NYSE: HES). There wasn’t much reason to believe that the merger wouldn’t go through, particularly as it was approved by shareholders of both companies. Still, it’s been a headwind on CVX stock.
Now that the merger is approved, investors can focus on a stock that is trading at 13.5x forward earnings and pays a dividend that has increased by an average of 5.39% - more than twice the current rate of inflation – over the past three years.
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
- $149.84
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $174.60 (16.5% Upside)
