5 Best Value Stocks To Buy According To Warren Buffett

4. Chevron Corporation (NYSE:CVX)

Berkshire Hathaway Stake: $23,373,304,000

Percentage of Berkshire Hathaway’s Portfolio: 7.78%

Number of Hedge Fund Holders: 59

Chevron Corporation (NYSE:CVX) is based in San Ramon, California, with a presence across 180 countries. It is involved in the exploration, production, refining, upstream activities concerning energy resources, manufacturing and sales of chemicals, and power generation. The company has investments in low-carbon technologies allowing for commercial solutions for the energy sector. Warren Buffett increased his stake in Chevron Corporation (NYSE:CVX) by 2% during Q2 2022. Berkshire Hathaway owned 161,440,149 shares of the company at the end of the quarter.

Chevron Corporation (NYSE:CVX) stock has performed well in 2022 despite the downturn in the market and has given a  return of 45.1% YTD as of October 25, 2022, as compared with the S&P 500’s decline of 20.8%.

On October 19, 2022, Lloyd Byrne, an analyst at Jefferies, started his coverage of Chevron Corporation (NYSE:CVX) with a Hold rating and a price target of $171. The analyst believes that energy’s “Option Value” can stay at elevated levels for a longer period which will drive upside in the stock price.

In its Q1 2022 investor letter, ClearBridge Investments shared its outlook on Chevron Corporation (NYSE:CVX). Here’s what the firm said:

The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.