5 Oil Stocks to Sell Before Recession Begins

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

Stock Price as of July 7: $142.66

Chevron Corporation (NYSE:CVX) is a San Ramon, California-based integrated oil company. The company is in the process of shifting its headquarters to a new location in California to fulfill the requirements of the employees situated in the headquarter. Chevron Corporation (NYSE:CVX) will also cover the shifting costs for employees who select the Houston facility in Texas, where the upstream segment is based.

Crude oil prices falling to $45 per barrel by the end of 2023 could cause Chevron Corporation (NYSE:CVX) to record a loss. The company needs a $50 per barrel crude oil price to break even. In a note issued on July 1, Jason Gabelman at Cowen lowered the price target on Chevron Corporation (NYSE:CVX)  from $179 to $160. This has restricted the potential upside from 25.4% to 12.1% only. The analyst slashed the target price in anticipation of underwhelming Q2 2022 results. Although Gabelman expects the company’s earnings per share (EPS) to be in line with consensus estimates, he thinks Chevron Corporation’s (NYSE:CVX) free cash flow results will miss estimates for the second quarter.

Here’s what Carillon Tower Advisers said about Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter:

“Along with the spike in oil prices, energy stocks performed best during the quarter, followed by more defensive and countercyclical sectors like utilities and consumer staples. Chevron (NYSE:CVX) traded higher with global energy prices. The war in Ukraine prompted fears over a shortage in supply, resulting in higher commodity prices.”

Chevron Corporation (NYSE:CVX) was held by 53 hedge funds at the end of Q1 2022.