Why Chevron Corporation is a buy as it trades at 52-week highs

Chevron Corporation (NYSE:CVX) at $176 is trading at year highs. After facing resistance at $170 since March, the stock is breaking out to new highs. Zacks Research recommends holding stock. This analysis considers Chevron a best buy.

Chevron Corporation is a fully integrated oil and gas company. The majority of revenue comes from upstream business activities. With rising oil and gas prices, Chevron is at its strongest point in a decade.

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Financial analysis shows core EPS at $8.15 with expected growth of 11.55%. The stock paid a dividend of $5.68, a dividend yield of 3.22%. The ROE is 14.75%. Priced at $176, Chevron has a PE of 10.42 and a PEG of 0.90. The latter is a general indication that Chevron is not yet fully valued.

We consider Chevron a best buy as a value, growth and dividend stock. There may be concerns about the dynamic ranking of the title. However, the stock is currently supported by rising oil prices. We expect prices to remain high for at least two years, as will the stock.

Chevron Corporation breaks out to find new high

Source – TradingView

Chevron Corporation remains optimistic. This week, the stock gained 5.23%. The RSI indicates that Chevron is trading just below the overbought region. The momentum is bullish. The RSI is expected to remain in this region for the foreseeable future. The title will win slowly but steadily.

Summary

Chevron Corporation is a recommended buy. Although the price is at 52-week highs, there is still room for gains. The stock is attractive for value, growth and dividend investing.

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Garland K. Long