10 Undervalued Wide Moat Stocks to Buy According to Analysts

5) Chevron Corporation (NYSE:CVX)

Average Upside Potential: 18.25%

Forward P/E Ratio (As of September 25): 10.56x

Chevron Corporation (NYSE:CVX) is engaged in integrated energy and chemicals operations in the United States and internationally.

Market experts believe that the company’s wide economic moat stems from its strong franchise, strong supply chain capabilities, and cost efficiencies. In addition, the company’s significant size adds to its already-established wide moat. Moving forward, Chevron Corporation (NYSE:CVX) is expected to deliver increased returns and margin expansion as a result of an oil-leveraged portfolio and the next phase of growth. This phase is focused on developing a large, advantaged Permian Basin position.

Chevron Corporation (NYSE:CVX)’s growth trajectory is expected to be aided by its focus on both traditional and new energy sectors. Moreover, the company’s upcoming projects are expected to enhance cash-margin and reduce carbon intensity. Chevron Corporation (NYSE:CVX) is expecting completion of its merger with Hess in Q3 2024. The company is focused on the TCO project in Kazakhstan and it plans to discuss a potential concession extension in the future.

The company’s exploration portfolio remains strong and drilling is planned in Namibia’s Orange Basin in Q4 2024. Chevron Corporation (NYSE:CVX)’s operational momentum in the Permian appears to be balanced with disciplined capital management. In Q2 2024, the company’s global production saw an increase of 11% as compared to the year-ago period. This was driven by the integration of PDC Energy, Inc. and strong execution in the Permian and Denver-Julesburg (DJ) Basins.

As per Wall Street, the shares of Chevron Corporation (NYSE:CVX) have an average price target of $177.08. At the end of Q2 2024, 64 hedge funds held stakes in the company.

Carillon Tower Advisers, an investment management company, released its fourth quarter 2023 investor letter. Here is what the fund said:

“Chevron Corporation (NYSE:CVX) traded lower, along with oil prices, and issued a disappointing earnings announcement due to overseas refining losses. Separately, the company announced an agreement to buy another energy company with operations offshore of Guyana, as well as in North Dakota, the Gulf of Mexico, and the Gulf of Thailand. This is a strategic acquisition for very little takeout premium.”