From Yahoo Finance: 2025-05-05 08:01:00

The energy sector is undervalued by 13.1% compared to the market’s 5.3%, impacted by the trade war and low crude oil prices. OPEC+ announced a production increase, causing oil prices to drop. However, AI growth in data centers presents an opportunity, with global electricity demand set to double by 2030.

Chevron Corporation (CVX) is a leading energy stock with 81 hedge fund holders and a forward P/E ratio of 14.95. Despite a decline in Q1 2025 earnings due to low oil prices, CVX generated $7.6 billion in cash flow and returned $6.9 billion to shareholders. The company plans to repurchase shares worth $11.5-13 billion in 2025.

CVX ranks 3rd among undervalued energy stocks, offering a 4.94% dividend yield. However, AI stocks may provide higher returns in a shorter time frame. Consider exploring an AI stock with significant growth potential while trading at less than 5 times earnings.



Read more at Yahoo Finance: Is Chevron Corporation (CVX) the Most Undervalued Energy Stock to Buy According to Hedge Funds?