With an average upside potential of 31.53% according to Wall Street analysts, Chevron Corporation (NYSE:CVX) is included among the 10 Most Promising Energy Stocks to Buy Now.
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.
Chevron Corporation (NYSE:CVX) is a promising addition for any portfolio, thanks to the company’s strong global presence, low-cost and long-lived global assets, solid track record of dividend growth, and high yield of 4.09%. The energy behemoth has grown its dividends for 39 consecutive years, and plans to repurchase between $10 billion and $20 billion of its stock each year.
To help sustain its high shareholder returns, Chevron expects to grow its free cash flow at a CAGR of more than 10% through 2030, assuming oil averages $70 a barrel. A major growth catalyst for the company is its recent acquisition of Hess, which has granted it access to the vast and low-cost assets in Guyana. Moreover, the Tengizchevroil expansion in Kazakhstan is also projected to add around $6 billion annually to the firm’s free cash flow.
Chevron Corporation (NYSE:CVX) has also emerged as a key winner from the US action in Venezuela earlier this year, as it had already been operating under a special US license in the country. The American oil major’s joint ventures with PDVSA are currently responsible for about a fourth of the South American country’s total output, equal to 260,000 barrels per day of crude. These numbers could receive a boost as Chevron’s executives indicated earlier this year that the company could increase this output by about 50% in the next two years within its existing footprint.
Meridian Hedged Equity Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2026 investor letter:
“Chevron Corporation (NYSE:CVX) operates as a globally diversified integrated energy company, with upstream crude oil exploration and production complementing its downstream refinement and retail operations. Our investment thesis is anchored in the company’s strict capital discipline, its highly efficient Permian Basin footprint, and the strategic benefits expected from the integration of recently acquired Hess Corporation. Together, these strengths support the potential for durable free-cash-flow generation, consistent dividend growth, and steady share repurchases across commodity cycles. Chevron’s stock benefited in March from a sharp rise in oil prices following supply disruptions, but performance was also supported by better-than-expected earnings earlier in the quarter. These results reinforced confidence in the company’s management team, operational strength and financial discipline. We maintained our position throughout the quarter.”
While we acknowledge the risk and potential of CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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