The Best and Worst Dow Stocks for the Next 12 Months

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9. Chevron Corp. (NYSE:CVX)

Upside Potential: 25.8%

Market Cap: $239 billion

Number of Hedge Fund Holders: 81

Chevron Corp. (NYSE:CVX) is an integrated energy company involved in upstream oil and gas exploration, midstream transport, and downstream refining and marketing.

Chevron Corp. (NYSE:CVX) reported a mixed set of Q4 2024 earnings results with revenue of $52.2 billion exceeding expectations, but EPS of $2.06 modestly below estimates. Per guidance in the latest investor communications, the production outlook for 2025 and 2026 remains healthy. The company has guided for 6% annual production growth through 2026, which implies 6%-8% growth in 2025 and 3%-6% in 2026.

It also guided for a significant increase in free cash flow (FCF), estimating $10 billion in additional FCF by 2026. The company also guided for capex of between $15 billion for 2025 and $14-$16 billion in 2026. Management expects capex intensity to moderate in the coming years, supporting higher FCF. Share repurchases will also continue to help the share price, as the company expects to maintain annual buybacks of $10-$20 billion.

On April 21, the company announced the start of oil and natural gas production from the Ballymore project in the Gulf of America, accelerating its production targets for 2026.

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