Investment Opportunities in Chevron and Kimberly-Clark
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy CVX?
Source: NASDAQ.COM
- Chevron's Robust Dividends: Chevron offers a 4% dividend yield and has increased its payout for 37 consecutive years, with plans to grow earnings per share and free cash flow by at least 10% by 2030 at $70 Brent crude, demonstrating resilience amid oil price fluctuations.
- Kimberly-Clark's Acquisition Strategy: Kimberly-Clark announced the acquisition of Kenvue, expected to close by the end of 2026; despite initial challenges, the company is optimistic about achieving billions in annual cost synergies, which will drive future earnings growth.
- Sustainability of Kimberly-Clark's Dividends: Kimberly-Clark anticipates generating $1.7 billion in free cash flow in 2025, fully supporting its $1.66 billion in dividend payments, showcasing financial stability amid industry slowdowns.
- Investment Value Assessment: Kimberly-Clark's stock is currently priced below $100, marking a 12-year low; despite facing growth stagnation and cost pressures, its 5.2% dividend yield and a forward P/E ratio of 13.1 make it an undervalued quality stock.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 174.030
Low
158.00
Averages
176.95
High
206.00
Current: 174.030
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron Reports Strong Q4 Earnings Amid Analyst Upgrades
- Analyst Rating Upgrades: JPMorgan analyst Arun Jayaram reiterated an Overweight rating for Chevron, raising the price target from $176 to $181, reflecting confidence in the company's future performance.
- Stable Cash Flow Guidance: Despite a production impact from a power distribution failure at TCO, Chevron reaffirmed its 2026 free cash flow guidance of $6 billion, indicating a stable financial outlook amid challenges.
- Venezuela Production Growth: Chevron expects production in Venezuela to increase by 50% over the next 18-24 months from the current output of 250,000 barrels per day, significantly enhancing the company's overall production capacity and market share.
- Capital Return Strategy: Chevron is projected to deliver approximately $26 billion in total shareholder returns in 2026 and 2027, reflecting the value in the company's upstream portfolio, particularly in high-return projects in Guyana, Kazakhstan, and the Gulf of America.
See More
Chevron Signs Agreement to Expand Gas Project in Equatorial Guinea
- Agreement Signed: Chevron has signed a Heads of Agreement with Equatorial Guinea, significantly increasing GEPetrol's stake in the Aseng gas project, which supports the country's Extended Gas Mega Hub plan, ensuring long-term gas supply and promoting LNG exports in West Africa.
- Positive Market Reaction: Chevron's stock is currently trading at $178.04, with a 5.3% return over the past week and 14.2% over the past month and year, indicating a favorable market perception of the company's role in gas monetization plans.
- Focus on Project Execution: Investors should monitor how effectively Chevron and its partners advance the Extended Gas Mega Hub concept and secure reliable offtake for LNG exports, as this will directly impact the company's long-term capital allocation and portfolio mix.
- Earnings Forecast Decline: Forecasts indicate that Chevron's earnings are expected to decline by an average of 23.2% per year over the next three years, which may affect investor sentiment regarding this project, particularly in relation to capital spending compared to the current P/E ratio of 7.17.
See More
Market Movements Ahead of U.S. Mining Conference
- Mining Stocks Surge: Ahead of the upcoming U.S. mining conference, MP Materials saw a 9.3% increase, with a nearly 30% rise year-to-date in 2026, indicating heightened market interest and demand for critical minerals, which may drive future investments and expansions for the company.
- Software Sector Decline: The S&P Software and Services sector dropped nearly 4% on Tuesday, with Cognizant plummeting 10%, reflecting investor concerns over the impact of artificial intelligence, which could undermine confidence in software companies and affect their growth potential moving forward.
- Walmart Hits $1 Trillion Market Cap: Walmart crossed the $1 trillion market cap for the first time on Tuesday, with shares up 25% over the past three months, indicating a strong recovery in the retail sector under new CEO John Furner, which may attract more investor interest.
- Biotech Earnings Reports Ahead: Eli Lilly and AbbVie are set to report earnings on
See More
European Energy Giants Face Pressure on Shareholder Returns
- Shareholder Return Risks: European energy giants face pressure to reduce shareholder returns due to falling crude prices, with Shell and TotalEnergies expected to report their lowest fourth-quarter profits in nearly five years, indicating a significant decline in industry profitability.
- Capital Expenditure Adjustments: Analysts suggest that energy companies may cut capital programs, particularly low-carbon projects, to navigate economic and geopolitical uncertainties, which could negatively impact long-term sustainability efforts.
- Buyback Plan Reductions: BP lowered its share buyback plan from $1.75 billion to $750 million in April, reflecting a conservative strategy in response to earnings that fell short of expectations, indicating weakened market confidence in shareholder returns.
- Profit Trend Changes: In 2022, the five largest Western oil companies reported nearly $200 billion in combined profits, but the current profit pressures starkly contrast with the “monster profits” seen a few years ago, highlighting the industry's volatile cycles.
See More
Trump Administration May Ease Venezuela Oil Production Restrictions
- Investment Opportunity Unlocked: The Trump administration may issue a general license this week allowing companies to produce oil and gas in Venezuela, which would provide new investment opportunities for U.S. firms amid current economic sanctions.
- Chevron's Role: Currently, only Chevron is permitted to extract oil in Venezuela under a special license, and it is expected to ramp up production by 50% within 18 to 24 months upon receiving U.S. approvals, significantly enhancing its competitive position in the South American market.
- Mixed Industry Response: While the Trump administration is urging the oil industry to invest at least $100 billion to repair Venezuela's energy sector, ExxonMobil's CEO has stated that the country is 'uninvestable' under the current system, whereas smaller oil companies are showing greater enthusiasm for potential opportunities.
- Policy Context: The Venezuelan government recently passed reforms to ease state control over its oil industry, granting more autonomy to private companies, which could attract more foreign investment and further drive the country's economic recovery.
See More
Geopolitical Tensions Resurface, Gold Rebounds
- Gold Price Surge: SPDR Gold Shares (GLD) surged over 6%, surpassing $4,950 per ounce, marking its strongest trading day since November 2008, primarily due to easing concerns over tighter Federal Reserve policies.
- Silver's Strong Rebound: Silver prices climbed nearly 9% to $86, recovering from a more than 30% plunge over the previous two sessions, indicating a resurgence in demand for precious metals that may attract more investors.
- Energy Market Reaction: Crude oil rose 1.8% to $63 a barrel after U.S. forces shot down an Iranian drone near a Navy aircraft carrier, reflecting the impact of geopolitical tensions on energy markets.
- Tech Stocks Underperform: The iShares Expanded Tech-Software Sector ETF fell 4.8%, marking its fifth consecutive daily decline, indicating waning market confidence in technology stocks, particularly in the software sector.
See More
Chevron Reports Strong Q4 Earnings Amid Analyst Upgrades
- Analyst Rating Upgrades: JPMorgan analyst Arun Jayaram reiterated an Overweight rating for Chevron, raising the price target from $176 to $181, reflecting confidence in the company's future performance.
- Stable Cash Flow Guidance: Despite a production impact from a power distribution failure at TCO, Chevron reaffirmed its 2026 free cash flow guidance of $6 billion, indicating a stable financial outlook amid challenges.
- Venezuela Production Growth: Chevron expects production in Venezuela to increase by 50% over the next 18-24 months from the current output of 250,000 barrels per day, significantly enhancing the company's overall production capacity and market share.
- Capital Return Strategy: Chevron is projected to deliver approximately $26 billion in total shareholder returns in 2026 and 2027, reflecting the value in the company's upstream portfolio, particularly in high-return projects in Guyana, Kazakhstan, and the Gulf of America.
See More
Chevron Signs Agreement to Expand Gas Project in Equatorial Guinea
- Agreement Signed: Chevron has signed a Heads of Agreement with Equatorial Guinea, significantly increasing GEPetrol's stake in the Aseng gas project, which supports the country's Extended Gas Mega Hub plan, ensuring long-term gas supply and promoting LNG exports in West Africa.
- Positive Market Reaction: Chevron's stock is currently trading at $178.04, with a 5.3% return over the past week and 14.2% over the past month and year, indicating a favorable market perception of the company's role in gas monetization plans.
- Focus on Project Execution: Investors should monitor how effectively Chevron and its partners advance the Extended Gas Mega Hub concept and secure reliable offtake for LNG exports, as this will directly impact the company's long-term capital allocation and portfolio mix.
- Earnings Forecast Decline: Forecasts indicate that Chevron's earnings are expected to decline by an average of 23.2% per year over the next three years, which may affect investor sentiment regarding this project, particularly in relation to capital spending compared to the current P/E ratio of 7.17.
See More
Market Movements Ahead of U.S. Mining Conference
- Mining Stocks Surge: Ahead of the upcoming U.S. mining conference, MP Materials saw a 9.3% increase, with a nearly 30% rise year-to-date in 2026, indicating heightened market interest and demand for critical minerals, which may drive future investments and expansions for the company.
- Software Sector Decline: The S&P Software and Services sector dropped nearly 4% on Tuesday, with Cognizant plummeting 10%, reflecting investor concerns over the impact of artificial intelligence, which could undermine confidence in software companies and affect their growth potential moving forward.
- Walmart Hits $1 Trillion Market Cap: Walmart crossed the $1 trillion market cap for the first time on Tuesday, with shares up 25% over the past three months, indicating a strong recovery in the retail sector under new CEO John Furner, which may attract more investor interest.
- Biotech Earnings Reports Ahead: Eli Lilly and AbbVie are set to report earnings on
See More
European Energy Giants Face Pressure on Shareholder Returns
- Shareholder Return Risks: European energy giants face pressure to reduce shareholder returns due to falling crude prices, with Shell and TotalEnergies expected to report their lowest fourth-quarter profits in nearly five years, indicating a significant decline in industry profitability.
- Capital Expenditure Adjustments: Analysts suggest that energy companies may cut capital programs, particularly low-carbon projects, to navigate economic and geopolitical uncertainties, which could negatively impact long-term sustainability efforts.
- Buyback Plan Reductions: BP lowered its share buyback plan from $1.75 billion to $750 million in April, reflecting a conservative strategy in response to earnings that fell short of expectations, indicating weakened market confidence in shareholder returns.
- Profit Trend Changes: In 2022, the five largest Western oil companies reported nearly $200 billion in combined profits, but the current profit pressures starkly contrast with the “monster profits” seen a few years ago, highlighting the industry's volatile cycles.
See More
Trump Administration May Ease Venezuela Oil Production Restrictions
- Investment Opportunity Unlocked: The Trump administration may issue a general license this week allowing companies to produce oil and gas in Venezuela, which would provide new investment opportunities for U.S. firms amid current economic sanctions.
- Chevron's Role: Currently, only Chevron is permitted to extract oil in Venezuela under a special license, and it is expected to ramp up production by 50% within 18 to 24 months upon receiving U.S. approvals, significantly enhancing its competitive position in the South American market.
- Mixed Industry Response: While the Trump administration is urging the oil industry to invest at least $100 billion to repair Venezuela's energy sector, ExxonMobil's CEO has stated that the country is 'uninvestable' under the current system, whereas smaller oil companies are showing greater enthusiasm for potential opportunities.
- Policy Context: The Venezuelan government recently passed reforms to ease state control over its oil industry, granting more autonomy to private companies, which could attract more foreign investment and further drive the country's economic recovery.
See More
Geopolitical Tensions Resurface, Gold Rebounds
- Gold Price Surge: SPDR Gold Shares (GLD) surged over 6%, surpassing $4,950 per ounce, marking its strongest trading day since November 2008, primarily due to easing concerns over tighter Federal Reserve policies.
- Silver's Strong Rebound: Silver prices climbed nearly 9% to $86, recovering from a more than 30% plunge over the previous two sessions, indicating a resurgence in demand for precious metals that may attract more investors.
- Energy Market Reaction: Crude oil rose 1.8% to $63 a barrel after U.S. forces shot down an Iranian drone near a Navy aircraft carrier, reflecting the impact of geopolitical tensions on energy markets.
- Tech Stocks Underperform: The iShares Expanded Tech-Software Sector ETF fell 4.8%, marking its fifth consecutive daily decline, indicating waning market confidence in technology stocks, particularly in the software sector.
See More
