Chevron is a global integrated oil company which has interests in exploration, production, refining, marketing, and petrochemicals.  The company owns seven refineries and one asphalt plant, and has interests in 10 international refineries.  Plus, Chevron has a network of approximately 25,000 retail gas stations worldwide.  The company is doing a good job focusing on large, long-lasting projects with high growth potential and profit margins. 

Chevrons stock price is closely tied to oil prices and will get a nice boost as oil prices jump higher.  Oil is getting more expensive to bring to the market and demand is set to increase substantially in the near term. 

Chevron has global refining capacity of more than 2 million barrels of oil per day.  Their profit margins on refining should get a nice boost in this type of environment.  The refining business is becoming profitable again. 
 
This morning the company reported that second-quarter earnings rose substantially on better refining margins and higher prices for oil and natural gas.  Chevron easily beat earnings forecasts just as I forecasted. 

Strong Buy – Chevron - Technicals

Chevron stock looks good from a technical perspective as well.  The stock’s 20-day and 50-day simple moving average (SMA) is rising which indicates the stock will trend higher.  Plus, the chart below shows a strong up-trendline, which is positive for the stock. 

Chevron stock (CVX) is trading around $76 per share.  I suggest you buy CVX stock as a great long term hold. 

And please make sure you get my firm’s Sound Profits monthly financial newsletter where you can get my very best stock pick every month.  Click here to learn more

Best Wishes,

Ted Peroulakis, MBA
Financial Analyst