10 Most Undervalued Energy Stocks to Buy According to Hedge Funds

3. Chevron Corporation (NYSE:CVX)

No. of Hedge Fund Holders: 81

Forward P/E Ratio as of May 2: 14.95

Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives. The oil and gas giant owns five US fuel refineries and boasts a network of Chevron and Texaco service stations.

The declining global oil prices took their toll on Chevron Corporation (NYSE:CVX)’s financial performance in Q1 2025, as the company reported adjusted earnings of $3.8 billion, or $2.18 per share. While that was down from the year-ago period of $2.93 per share, it still exceeded Wall Street expectations by $0.03. However, the company’s revenue of $47.61 billion fell below estimates by almost $783.4 million. The oil major’s global production totaled 3.35 million boe/d, flat from the same period last year, while its earnings from oil and gas declined by over 28% YoY.

Chevron Corporation (NYSE:CVX) generated $7.6 billion of cash flow from operations and $3.7 billion of free cash flow in Q1. The company used its massive cash reserves to return $6.9 billion to shareholders during the period. However, given the shaky economic outlook faced by Big Oil, Chevron has slowed the pace of its share repurchase program. The company’s share repurchases this year could be between $11.5 billion and $13 billion in FY 2025,  which would be at the lower end of its guidance of $10 billion to $20 billion.

With a current annual dividend yield of 4.94%, Chevron Corporation (NYSE:CVX) is included among the 10 Energy Stocks with Fat Dividends.