10 Worst Performing Dow Stocks Year-to-Date

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 64

Share Price Performance Year-to-Date: 0.94%

Chevron Corporation (NYSE:CVX) is a global energy company with a significant presence in oil, natural gas, and is also making moves in alternative energy sectors. It operates in over 180 countries and is engaged in oil and gas exploration, production, refining, and marketing, along with power generation.

While Chevron (NYSE:CVX) is a strong company, its price decline is tied to its industry. As of October 18, the Energy Select Sector SPDR Fund (XLE) has gained slightly over 6.5%, underperforming the broader market significantly. It is one of the reasons why the company has been one of the worst performing Dow stocks.

According to the International Energy Agency’s (IEA) September report, global oil demand growth is slowing down, with only an increase of 800 thousand barrels per day (kb/d) in the first half of 2024, the lowest increase since 2020. The decline is mainly due to a significant drop in oil use in China, which saw a decrease of 280 kb/d in July, marking the fourth straight month of lower demand. IEA projects that global oil demand is expected to grow by 900 kb/d in 2024, down from 2.1 million barrels per day (mb/d) last year, and by only 950 kb/d in 2025.

In addition to that, Chevron (NYSE:CVX) is engaged in a competitive bid with Exxon Mobil for a $53 billion acquisition of Hess, which holds a significant stake in Guyana’s oil-rich Stabroek block. Exxon has filed an arbitration claim to potentially block the merger and argued that it has the right of first refusal on Hess’ Guyana assets due to its majority stake in the consortium. This could delay Chevron’s (NYSE:CVX) deal, with Exxon leaving open the option of a settlement.

Analysts are still bullish on the company as 19 out of 27 analysts that have covered the stock maintain a Buy-equivalent rating on it. On October 17, The Fly reported that Bank of America resumed its coverage of the company stock with a Buy rating and a price target of $168.

BofA believes that the recent decline in Chevron’s (NYSE:CVX) stock value, influenced by its acquisition of Hess, has caused a temporary drop in its rating. However, the firm believes that the oil giant’s core business is strong and offers good value at its current price.