Chevron Corp Q2 FY12/24 Earnings Review
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
More Big Oil
by Alex King, CEO, Cestrian Capital Research, Inc.
Background - Sector Rotation - Again!!
(Apologies if you read this part already in this week’s notes on Exxon Mobil or Occidental Petroleum, but it’s a core part of the reason I own $CVX personally, so worth repeating here).
Energy stocks are, I believe, under accumulation at present. I don't think a near-term breakout is on the cards; I don't think this is a momentum opportunity; but speaking personally I have positions in each of the energy stocks and ETFs that comprise the Energy Sector Model Portfolio in our Inner Circle service.
Why?
Because sector rotation.
Cestrian Capital Research, Inc
At the present time, tech stocks are in the ascendant and if you want to stay ahead of the market, tech remains a compelling place to be. The rate cut cycle will likely help that. But just as sector X is moving up, you can bet that Big Money is quietly accumulating positions in sector Y which has yet to move up - so that when the news breaks and momentum investors everywhere pour into Sector Y, bigs have already loaded up.
Energy stocks I suspect are being accumulated because (1) they are out of fashion, having mooned in 2022 (2) geopolitics continues to get ugly and oil is a useful asset class to own at such a time and (3) inflation.
"Inflation?", you may say. "What inflation? There is no inflation - Chairman Powell just told us it was beaten!". Well, that 50bps cut just saw US government bonds sell off and oil move up. Bonds are saying that inflation is likely to rear its head once more, and oil is saying that if tech and bonds swoon, oil will likely hold up. You can see this play out daily in our Market On Open notes.
Chevron Corp ($CVX)
Read on for the financial detail, valuation, our stock chart and rating.