Warren Buffett’s Latest Portfolio: 5 Undervalued Stock Picks

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

1-Year Forward P/E Ratio: 8.58x

Warren Buffett’s Berkshire Hathaway’s Holdings: $23,373,304,000

Percentage of Warren Buffett’s Berkshire Hathaway’s Portfolio: 7.78%

Chevron Corporation (NYSE:CVX) is a San Ramon, California-based integrated energy company with a presence in the upstream, midstream, and downstream segments.

In a note issued to investors on August 22, Phillip Jungwirth at BMO Capital gave Chevron Corporation (NYSE:CVX) stock an ‘Outperform’ rating and a target price of $180. The analyst highlighted the record Q2 2022 results reported by the company due to its strong operational performance in the upstream and downstream segments.

Chevron Corporation’s (NYSE:CVX) focus on the right asset base will help the firm in winning back investors. Furthermore, the positive outlook of crude oil and natural gas prices will aid the company in generating strong free cash flow and healthy shareholder returns in the form of dividends and share buybacks. Chevron Corporation (NYSE:CVX) stock offers an attractive forward dividend yield of 3.62% as of August 25.

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.”

Of the 895 hedge funds tracked by Insider Monkey that filed 13Fs for Q2, 53 funds held a stake in Chevron Corporation (NYSE:CVX) as of June 30.