#2 - Chevron (NYSE:CVX)
Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program in January 2023. Like Apple, Chevron is no stranger to buyback programs. Due to the industry's cyclical nature, oil companies frequently find themselves in periods where they need to put extra cash to good use. And that cash is significant because Chevron is financing the buyback with cash, not debt.
It's also helpful to remember that the price of oil was around $50 at the time Chevron announced the buyback program. It's now hovering around $80, with many experts expecting it to move higher. Higher oil prices are a good predictor of earnings and stock price growth.
Analysts are forecasting 14.2% earnings growth in the next 12 months. CVX stock has increased by 34.1% in the last five years. In addition to the buyback program, Chevron increased its dividend for the 37th consecutive year in February 2024.
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
- $142.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $175.19 (22.6% Upside)
