We recently published a list of 13 Stocks on Jim Cramer’s Radar Recently. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other stocks on Jim Cramer’s radar recently.
On Monday’s episode of Mad Money, Jim Cramer broke down the day’s market rally and argued in favor of staying invested, even in times of uncertainty. He pointed out that earnings are once again playing a significant role in driving market behavior.
“Earnings matter again, okay? That’s what happened last night when the United States and China reached an agreement, however temporary, to hold off trade armageddon. The rollback of the exorbitant tariffs to much more reasonable levels caused the stock market to explode.”
READ ALSO: 10 Jim Cramer Stocks with Huge Upside Potential and Jim Cramer’s Thoughts on These 13 Stocks.
He highlighted that the rally was not limited to companies directly tied to U.S.-China trade. He called it “a spectacular day for the bulls.” Still, Cramer was quick to ground the excitement. He pointed out that despite the dramatic gains, the S&P 500 remains essentially flat for the year. While he welcomed the reversal, he said:
“Now don’t get me wrong, I’m glad it happened, but I just spent a week in Europe, and it is stunning how much better the markets are doing over there.”
He expressed hope that the rebound in U.S. stocks continues but warned investors not to ignore other global opportunities. “If we find ourselves in trouble again, something that’s still a real possibility, please don’t forget that Europe’s also an option,” he said. He acknowledged that European markets have been the best-performing so far this year.
“Bottom line: It’s better to stay in, stay on, and let her ride than to try to pick the perfect moment to trade in and out and in and out of the stock market. By the way, that’s not much of a strategy. It’s more of a game of chicken where there are no winners, just losers who think they are smarter than the average bear.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 12. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tanker truck making its way through a refinery facility. .
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.”
Overall, CVX ranks 4th on our list of stocks on Jim Cramer’s radar recently. While we acknowledge the potential of CVX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
