From Nasdaq: 2025-02-15 07:45:00

Chevron Corp. (NYSE: CVX) is cutting 20% of its global workforce by 2026 to reduce costs and simplify operations amid a merger with Hess Corp. The stock initially dropped 2% but remains 10% below its 52-week high, reflecting long-standing challenges in the oil industry.

Chevron’s struggles stem from low oil prices, drilling restrictions, and a shift towards renewable energy. The company’s stock has been stagnant, with uncertainty looming over its growth prospects. The impact of the merger with Hess, along with cost overruns, is a key concern for investors.

The oil market is sensitive to supply and demand dynamics, and Chevron is cautious about oversupply. The company’s profitability is also affected by its merger with Hess, pending Exxon Mobil arbitration. Chevron aims to modernize operations with robotics and AI, impacting both its stock and the tech sector.

Despite layoffs and missed earnings, Chevron’s stock remains fairly priced with a P/E ratio in line with industry averages. The company may benefit from higher LNG exports and rising oil prices due to strategic reserves. Analysts forecast an 11.6% gain from current prices, making CVX stock a buy-and-hold opportunity in a volatile sector.



Read more at Nasdaq:: Is Chevron Stock Primed for Growth After Profit-Boosting News?