Potential Successor to Warren Buffett at Berkshire Faces Significant Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Source: Barron's
Ted Weschler's Role: Ted Weschler is poised to become Berkshire Hathaway's leading stockpicker.
Investment Success: He transformed an IRA account of approximately $70,000 in the late 1980s into $221 million by 2018.
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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: 169.930
Low
158.00
Averages
176.95
High
206.00
Current: 169.930
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's Q4 Earnings Preview Highlights Venezuela Opportunity
- Revenue Expectations Decline: Analysts forecast Chevron's Q4 revenue at $48.57 billion, down from $52.23 billion last year, indicating challenges amid market volatility that could affect investor confidence.
- Earnings Per Share Forecast: Expected EPS is $1.45, lower than last year's $2.06, and while the company has beaten estimates in five of the last ten quarters, this decline may raise market concerns.
- Divergent Analyst Ratings: Morgan Stanley maintains an Overweight rating but lowers the price target to $174, while Jefferies keeps a Buy rating and raises the target to $189, reflecting mixed market sentiment on Chevron's future performance.
- Venezuela Opportunity: Chevron could be one of the biggest beneficiaries of U.S. military actions in Venezuela, with investors keenly watching how the company assesses this market opportunity and its implications for short- and long-term financials.
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Chevron Maintains Dividend Stability Amid Falling Oil Prices
- Dividend Appeal: Chevron's dividend yield stands at approximately 4.1%, making it a favorite among investors in the oil and gas sector, even as oil prices have steadily declined from $120 per barrel in early 2022 to the current $65, resulting in lower revenues and profits for the company.
- Consistent Dividend Record: With 37 consecutive years of dividend increases, Chevron demonstrates its ability to navigate volatility in the unpredictable energy sector, where its upstream operations may suffer during price declines, but its refining segment can become more profitable, alleviating financial stress.
- Strong Financial Position: Chevron boasts an AA credit rating and nearly $8 billion in cash, allowing it to tap into cash reserves or borrow if needed, while generating sufficient free cash flow to cover its dividend with about 20% remaining for other investments.
- Future Growth Plans: Following the $55 billion acquisition of Hess, Chevron aims to increase production output by 2% to 3% annually through 2030, with management confident in funding capital expenditures and current dividends even at Brent crude prices of $50 per barrel.
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