5 Oil and Gas Stocks to Buy According to Ray Dalio

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 59

Chevron Corporation (NYSE:CVX) is an energy company that is involved in hydrocarbon exploration, oil and gas production, refining, marketing, and transport. Ray Dalio’s investment portfolio increased its holding in the company by 64% to 711,243 shares in Q2, valued at  $102.97 million, accounting for 0.43% of the firm’s portfolio.

On June 29, Chevron Corporation (NYSE:CVX) posted impressive second-quarter results, with an EPS of $5.82, exceeding the forecasts by $0.79. The revenues were up 82.9% on a YoY basis to $68.76 billion, outperforming estimates by a staggering $11.07 billion. Furthermore, the cash flow from operations was recorded at $13.8 billion and the company generated a free cash flow of $10.6 billion during the quarter.

On August 15, Cowen analyst Charles Ryhee maintained an Outperform rating on Chevron Corporation (NYSE:CVX)’s shares and raised his price target to $120 from $119. Ryhee remains positive about the company and noted that the price target revision was made in the light of raised Q2 2022 guidance from the management.

Here is what ClearBridge Investments had to say about Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”