Why This Top Value Fund Is Buying Builder PulteGroup
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 17 2024
0mins
Should l Buy CVX?
Source: Barron's
- Long-Term Investment Strategy: Jim Polk manages the Homestead Value fund with a long-term perspective, focusing on holding stocks for at least three to five years and sometimes even longer.
- Investment Approach and Performance: The fund's low turnover rate, focus on high-quality companies, and diversified portfolio have led to above-average risk-adjusted returns compared to its peers, outperforming the Russell 1000 Value index.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 182.260
Low
158.00
Averages
176.95
High
206.00
Current: 182.260
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Production Capacity Increase: The company plans to boost output by 7% to 10% in 2023, which translates to a meaningful increase from last year's 3.7 million barrels per day, enhancing its market competitiveness and providing higher returns to shareholders.
- Venezuela Potential: Chevron's production in Venezuela could increase by 50% over the next 18 to 24 months, further driving overall output growth and potentially boosting stock prices due to positive market news.
- Cost Savings Plan: The company expects to achieve $3 billion to $4 billion in structural cost savings by year-end, providing additional support for free cash flow growth and ensuring profitability amid oil price fluctuations.
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- Memorandum of Understanding Signed: On January 24, 2026, Chevron signed an MoU with the National Oil Corporation of Libya to evaluate development and exploration potential, laying the groundwork for future investments and collaborations in the country.
- Confidence in Resource Development: Chevron's Vice President of Exploration, Kevin McLachlan, expressed confidence in leveraging the company's extensive experience in oil and gas project development to support Libya in further developing its substantial oil resources, thereby strengthening its market position.
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- Acquisition-Driven Growth: The acquisition of Hess significantly strengthened Chevron's portfolio, with expectations of a 7% to 10% increase in output this year, further solidifying its leadership position in the global oil and gas market.
- Cost Savings Target: The company aims to achieve $3 billion to $4 billion in structural cost savings by the end of this year, which will provide robust support for its future profitability, especially in a volatile oil price environment.
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- Capital Expenditure Shift: Major companies like Exxon and Chevron are shifting their capital programs towards complex, high-return projects that require more engineering, equipment, and services, providing robust support for SLB and Baker Hughes.
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See More
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- Cash Flow Growth Expectation: Chevron anticipates significant free cash flow growth in 2026 at current oil price levels, especially if prices exceed $70, potentially generating an additional $12.5 billion compared to 2025, showcasing strong financial resilience.
- Production Capacity Increase: The company plans to boost output by 7% to 10% in 2023, which translates to a meaningful increase from last year's 3.7 million barrels per day, enhancing its market competitiveness and providing higher returns to shareholders.
- Venezuela Potential: Chevron's production in Venezuela could increase by 50% over the next 18 to 24 months, further driving overall output growth and potentially boosting stock prices due to positive market news.
- Cost Savings Plan: The company expects to achieve $3 billion to $4 billion in structural cost savings by year-end, providing additional support for free cash flow growth and ensuring profitability amid oil price fluctuations.
See More
Chevron Wins Bid for Onshore Contract Area in Libya
- Winning Bid in Libya: Chevron, through its subsidiary, has secured the winning bid for Contract Area 106 in Libya's 2025 bidding round, marking a strategic expansion into the North African market that is expected to significantly enhance its resource development capabilities in the region.
- Memorandum of Understanding Signed: On January 24, 2026, Chevron signed an MoU with the National Oil Corporation of Libya to evaluate development and exploration potential, laying the groundwork for future investments and collaborations in the country.
- Confidence in Resource Development: Chevron's Vice President of Exploration, Kevin McLachlan, expressed confidence in leveraging the company's extensive experience in oil and gas project development to support Libya in further developing its substantial oil resources, thereby strengthening its market position.
- Strategic Investment Outlook: The award of the contract is contingent upon the execution of a Production Sharing Agreement, and Chevron looks forward to collaborating with NOC and other key stakeholders to advance Libya's energy sector development.
See More
Investment Choices for Dividend-Paying Energy Stocks in 2026
- Enterprise Products Yield: Enterprise Products Partners boasts a 6.2% dividend yield with 27 consecutive annual increases, demonstrating a strong track record as a reliable income investment suitable for risk-averse investors.
- Stable Revenue Model: The business model of Enterprise Products resembles a toll-taker, charging fees for the use of energy infrastructure assets, which helps avoid the risks associated with commodity price volatility, ensuring stable cash flow and dividends.
- Chevron's Diversified Risk: Chevron operates across upstream, midstream, and downstream sectors, exposing it to energy price volatility; however, this diversification helps mitigate the impacts of commodity price swings, with a dividend yield of 3.9%.
- Future Investment Choices: If oil prices rise sharply, Chevron is likely to outperform Enterprise Products Partners in 2026, while in scenarios of stagnant or falling oil prices, Enterprise's reliable distributions may make it the preferred choice for income-focused investors.
See More
Chevron's Optimistic Growth Outlook for 2026
- Record Production Achievement: Chevron achieved record production last year with an average output of 3.7 million barrels of oil equivalent per day, and despite a 15% drop in oil prices, its adjusted free cash flow grew by 35%, demonstrating strong operational capability and market adaptability.
- Acquisition-Driven Growth: The acquisition of Hess significantly strengthened Chevron's portfolio, with expectations of a 7% to 10% increase in output this year, further solidifying its leadership position in the global oil and gas market.
- Cost Savings Target: The company aims to achieve $3 billion to $4 billion in structural cost savings by the end of this year, which will provide robust support for its future profitability, especially in a volatile oil price environment.
- Venezuela Potential Unlocked: Chevron's production in Venezuela is expected to increase by 50% over the next 18 to 24 months, which will generate additional cash flow for the company and could drive stock price appreciation, enhancing its market performance.
See More
Energy Sector Sees Sustained Growth Amid Tech Stagnation
- Energy Sector Recovery: The energy sector has achieved eight consecutive weeks of growth, a trend not seen in nearly two years, indicating a market shift towards tangible resources amid stagnation in Big Tech.
- Contract-Driven Growth: SLB's recent international project awards and higher-margin digital completions have reignited confidence that service providers are entering a multi-year spending upswing, driving overall industry performance.
- Capital Expenditure Shift: Major companies like Exxon and Chevron are shifting their capital programs towards complex, high-return projects that require more engineering, equipment, and services, providing robust support for SLB and Baker Hughes.
- Tech Sector Lagging: While investors are skeptical about the rapid growth of AI revenues in the tech sector, the energy sector's sustained performance suggests a preference for tangible scarcity over digital hype, reflecting a broader investor inclination towards physical assets.
See More
Transocean Acquires Valaris as Offshore Oil Drillers Benefit from Market Recovery
- Transocean's Acquisition: Transocean has acquired Valaris for $5.8 billion, signaling a strong belief in the future of offshore oil drilling.
- Industry Recovery: The acquisition comes as oil prices and drilling activity are on the rise, indicating a recovery from a prolonged downturn in the industry.
See More
