Chevron Corp (CVX) reported a 52% YoY gain in Q3 adjusted free cash flow and a 14% adjusted FCF margin, covering its dividend and buybacks. CVX stock may be worth $177.49 per share, a 14% gain. Q3 results were released on Oct. 31, providing a value buying opportunity for investors.

Chevron’s Q3 adjusted free cash flow was $7 billion, up 42.9% from Q2 and 52% from a year ago. Production increased due to acquisitions and higher output. The FCF margin on revenue was 14% in Q3. This strong FCF generation covers shareholder payments, boosting the company’s valuation and potential stock price.

Analysts estimate that CVX stock could reach $184.64 based on free cash flow yield and $170.34 based on dividend yield. The average price target is $177.49, 14% higher than the current price. Analysts’ price targets range from $170.31 to $191.07 per share, indicating potential upside over the next year. Investors can consider shorting out-of-the-money put options for a lower buy-in point.

Read more at Barchart: Chevron’s Free Cash Flow Rises