5 Best Oil Stocks to Buy for 2024

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors: 72

Oil giant Chevron Corporation (NYSE:CVX) has a dividend growth record of 36 consecutive years. Chevron Corporation (NYSE:CVX) is also among the companies with the biggest buyback programs. In January, Jefferies upgraded the stock to Buy from Hold with a price target of $184.

Insider Monkey’s database of 910 funds shows that 72 hedge funds had stakes in Chevron Corporation (NYSE:CVX) as of the end of the September quarter.

Ariel Focus Fund made the following comment about Chevron Corporation (NYSE:CVX) in its third 2023 investor letter:

“Also in the quarter, we initiated a position in Chevron Corporation (NYSE:CVX), the second largest integrated energy company in the U.S., operating in exploration, production and refining on a global scale. We view the company as competitively advantaged with a strong balance sheet, sustainable growth pathway and an effective management team. Going forward CVX expects improved cost efficiencies and production growth via its differentiated position in the Permian Basin and recent acquisition of Noble Energy. Additionally, management believes a combination of its new higher-margin projects along with operational improvements will drive a double-digit return of capital employed by 2027. Although oil and gas prices, which lay outside of the company’s control, ultimately dictate Chevron’s earnings and cashflow profile, the organization is laser focused on capital discipline. It is this lack of predictability, and potential fear of a global recession which presented us with an opportunity to initiate a position in this high barrier to entry producer at reasonable prices.”