Chevron (CVX) Ranks 5th On Our List Of Best Energy Stocks To Invest In Now

We recently published a list of 12 Best Energy Stocks To Invest In Now. In this article, we are going to look at where Chevron Corporation (NYSE:CVX) stands against other best energy stocks to invest in now.

We recently published a list of 12 Best Energy Stocks To Invest In Now. In this article, we are going to look at where Chevron Corporation (NYSE:CVX) stands against other best energy stocks to invest in now.

2025 Oil Market Outlook: Prices to Fall

On December 18, CNBC reported that oil prices in 2025 are expected to decline due to a looming surplus in the global market, rather than any immediate actions by President-elect Donald Trump. As Trump prepares to assume office on January 20, 2025, the U.S., the world’s largest oil producer, continues to pump record amounts of crude, while demand from China, the world’s largest oil importer, slows amid economic headwinds.

Market analysts foresee U.S. crude oil prices averaging around $61 per barrel and Brent crude at $65 per barrel in 2025, according to forecasts from Bank of America and RBC Capital Markets. These projections represent a decline of over $8 from current levels. UBS presents a more moderate outlook, predicting Brent prices to average around $80 per barrel, supported by stronger demand and a narrower surplus.

While Trump has expressed a desire for lower energy prices, geopolitical factors could counteract his goals. If the Trump administration reinstates stricter measures on Iranian and Venezuelan oil exports, prices might rise instead of falling, according to Jorge Leon of Rystad Energy. However, any potential tariffs Trump may impose are unlikely to significantly impact global demand until 2026.

The evolving energy landscape is being shaped by the growing demands of AI infrastructure, advancements in cleaner energy solutions, and shifting global market dynamics. As tech giants increasingly turn to energy companies to meet their energy needs, companies are positioning themselves at the forefront of this transformation.

Our Methodology

To compile our list of the 12 best energy stocks to invest in now, we used Finviz and Yahoo stock screeners to find the 30 largest energy companies. Then we used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors: 63

Chevron Corporation (NYSE:CVX), headquartered in California, is one of the world’s largest integrated energy companies. The company operates across the entire oil and gas value chain, including exploration, production, refining, and marketing. Chevron Corporation (NYSE:CVX) sells fuels, lubricants, and petrochemicals and serves both industrial and retail customers globally.

Chevron Corporation (NYSE:CVX) is advancing several key projects poised to drive production and cash flow growth in the coming years. The company’s high-pressure Anchor project in the Gulf of Mexico is now operational, and water injection has commenced to enhance production at the Jack/St. Malo and Tahiti fields. These initiatives, along with additional projects planned through 2025, are expected to boost Gulf of Mexico production to 300,000 barrels per day by 2026. Meanwhile, at the Tengizchevroil (TCO) project in Kazakhstan, all four pressure boost facilities are fully operational, with start-up procedures scheduled to begin in the first quarter of 2025.

Chevron Corporation (NYSE:CVX) is also making significant investments in technology and digital tools to enhance productivity and reduce costs. The company has been diligent in its efforts to optimize its portfolio, leveraging technology to enhance productivity and change how and where work is performed. This is expected to deliver $2 billion to $3 billion in structural cost reductions by the end of 2026. Furthermore, the company is actively managing its capital spending to ensure it remains disciplined and aligned with its financial priorities.

Overall, CVX ranks 5th on our list of best energy stocks to invest in now. While we acknowledge the potential of CVX to grow, our conviction lies in the belief that 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 that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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