13 Stocks on Jim Cramer’s Radar Recently

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 81

Noting that the stock has been down and the company’s dividend, a caller inquired if they should add to their position in Chevron Corporation (NYSE:CVX), and here’s what Cramer had to say:

“I think the answer is yes. You get a 4.8% yield. They return a lot of money to shareholders. I think they’re doing terrifically. The problem, of course, is you have to like oil to own Chevron. If you do like oil, I think it’s a terrific place to be….”

Chevron (NYSE:CVX) works in the oil and gas industry through exploration, production, refining, and transport. The company produces petrochemicals and is involved in creating renewable fuel sources. TCW Relative Value Large Cap Fund stated the following regarding the company in its Q3 2024 investor letter:

“Chevron Corporation (NYSE:CVX), headquartered in San Ramon, CA, is an integrated energy company. At elimination, the stock had a $273 billion market capitalization and met all five valuation factors, including a robust 4.4% dividend yield. Chevron’s planned acquisition of Hess† would yield a strong restructuring catalyst through elimination of duplicate corporate costs and a new markets catalyst through Hess’ 30% interest in the Stabroek oilfield off Guyana; these blocks have a very low cost of supply and decades of reserves that would support strong free cash flow. While Chevron recently received Hart[1]Scott-Rodino (HSR) clearance to acquire the company, the closure timing has extended from Q4 2024 to possibly to Q2 2025 as Chevron is engaged in arbitration with peers ExxonMobil (XOM; 2.47%**) and Chinese state-owned CNOON over rights of first refusal (ROFR) for Hess’ interest in Stabroek. As Chevron’s expected arbitration resolution timeline has slipped, we believe that ExxonMobil and CNOOC’s ROFR case may have more merit than expected, thus putting the entire Hess acquisition at risk. Given an increasingly reasonable outcome that Chevron might abandon the Hess acquisition altogether, we eliminated the position in the stock.”