Chevron Is One of the Largest Energy Companies by Market Cap. But Is It a Buy?
From Nasdaq: 2025-06-22 05:46:00
Wild price fluctuations in energy prices in the first half of 2025 have been influenced by various factors, including tariffs, recession fears, and military conflicts. Despite the volatility, the oil benchmark West Texas Intermediate has returned to its 2025 starting level. Investors are considering adding energy exposure to their portfolios, with a focus on industry stalwart Chevron (NYSE: CVX).
Chevron stock advocates highlight the company’s diverse operations in the energy value chain, particularly its robust upstream business. Chevron projects significant free cash flow from its upstream business in 2026, driven by various assets. The company’s consistent dividend growth over 38 years also makes Chevron stock attractive to income-seeking investors.
However, some investors remain cautious about Chevron stock due to potential risks associated with energy price fluctuations and the company’s focus on share buybacks. Others suggest that companies with nuclear energy exposure may offer better growth opportunities. Ultimately, the decision to invest in Chevron stock depends on individual risk tolerance and investment preferences.
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