We recently published a list of 10 Low Volatility Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other low volatility stocks to buy according to billionaire Ken Fisher.
Billionaire Ken Fisher, a prominent money manager, renowned author, and financial analyst, is the founder of Fisher Asset Management. Fisher founded his hedge firm in 1979 and was CEO until 2016 when he stepped down. Currently, he serves as Fisher Investments’ Executive Chairman and co-chief investment officer alongside Jeff Silk. The billionaire’s net worth is believed to be more than $11.2 billion, making him one of the wealthiest Americans and billionaires in the world. Known for his emphasis on long-term investment, Fisher also believes in diversification to reduce risk. To that end, Fisher Asset Management holds a highly diversified portfolio worth around $244 billion, with technology equities accounting for 31.8% of its assets.
Fisher Asset Management’s investing strategy is based on Ken Fisher’s conviction in capitalism and free markets, where securities prices are determined by supply and demand. The firm uses market research and key criteria such as the price-to-sales ratio to identify undervalued growth stocks. It asserts that securities prices are solely determined by supply and demand, and that capital markets accurately represent generally known facts.
Fisher’s 2025 Outlook
Fisher recently highlighted three potential trajectories for global equities in 2025, emphasizing that some factors—such as central bank rate reduction, GDP reporting, profitability, climate change, and Big Tech antitrust cases—will not influence their estimates. According to the billionaire, central banks’ activities follow market developments instead of driving them. Similarly, long-term issues such as peak oil consumption, demographic upheavals, and regulatory conflicts have little effect on stock prices in the near term. In addition, he believes that current political developments may affect emotion but not long-term market direction. Instead, bull markets collapse owing to either blind enthusiasm or an unanticipated economic shock with a global effect.
Speaking on President Trump’s tariffs specifically, Ken Fisher believes that the global economy and stock market will stay robust despite worries, stating:
“Market volatility can feel unsettling. However, selling stocks during a downturn can lead to missing out on gains if the market rebounds, which we believe will happen this year. While so far, President Trump has proposed larger tariffs this year than in 2018 to 2019, they may not be fully implemented or remain in effect as long as expected. Even if they do, businesses are also highly adaptable and find ways to adjust to shifting economic policies which can mitigate the longer term damage some fear. All in all, we still see a strong case for global economic growth ahead, despite tariffs, which should continue to support this bull market.”
Our Methodology
For this article, we picked companies from Fisher Asset Management’s 13F portfolio as of the end of the fourth quarter of 2024. The following firms have low beta values (<1), consistent dividend histories, and robust businesses. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tanker truck making its way through a refinery facility. .
Chevron Corporation (NYSE:CVX)
Beta Value: 0.93
Dividend Yield: 4.15%
Fisher Asset Management’s Q4 Stake: $2.88 billion
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is a renowned American global energy company that focuses on the oil and gas industry. It was founded as the Standard Oil Company of California and is the second-largest direct descendant of Standard Oil. The company operates in over 180 countries throughout the world.
On March 7, Goldman Sachs analyst Balaji Krishnamurthy reaffirmed Chevron Corporation’s (NYSE:CVX) Buy rating and set a price target of $183 on the company’s shares. One of the primary reasons for the rating is the anticipated rise in production and free cash flow, notably from critical projects like Tengiz in Kazakhstan, the Permian Basin, and the Gulf of America. These projects are expected to dramatically increase Chevron’s production capacity and generate an additional $10 billion in free cash flow by 2026. Furthermore, Chevron’s commitment to shareholder returns is critical. The firm expects to achieve a capital returns yield of around 12% by 2026.
Chevron Corporation (NYSE:CVX) reported a solid performance in Q4 2024, raking in $3.2 billion, up from $2.3 billion in 2023. Full-year 2024 production also hit new highs, with a 7% increase in global output and a significant 19% increase in US production, owing mostly to the company’s growth in the Permian Basin. This achievement allowed the company to repay a record $27 billion to shareholders via dividends and buybacks.
Overall, CVX ranks 6th on our list of low volatility stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of CVX as an investment, our conviction lies in the belief that certain 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 trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.