10 Hottest Mega-Cap Stocks So Far in 2025

10. Chevron (CVX)

• YTD Total Return: 5.98%

Chevron (NYSE:CVX) has been trading around $135 to $180 since 2022 and hasn’t broken above or below that range in a while. CVX trading up and down that band is why it is on this list. The stock declined in December but started to recover at the end of the month. As I said with Sinopec, I believe Chevron (NYSE:CVX) is also linked to macroeconomic factors, and whether or not the stock does good depends a lot on whether or not the U.S. economy stays strong and keeps oil demand strong with it.

The performance here has been mixed. They’ve come in below their prior-year earnings, mostly because of weaker margins in their refining segment and slightly lower oil and gas realizations. In the second and third quarters of 2024, Chevron still pulled in billions of dollars in profit. Plus, they flashed some eye-catching metrics like record Permian Basin production.

The key narrative, though, is that they’ve managed to keep churning out substantial free cash flow — enough to fund large shareholder returns, continue investing in high-return projects, and chip away at costs. They’ve also announced plans to cut overall capital spending next year and tighten up their portfolio by selling off certain Canadian assets for $6.5 billion.

Chevron’s hefty cash returns will likely keep it on solid footing in the near term, though the long-term case depends a lot on oil prices.

While we acknowledge the potential of CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.