How to Buy Chevron Stock Now, Forecast and Dividend Guide
Chevron stock, one of the largest players in the U.S. oil industry, is a compelling choice for investors because of its many strengths - especially for long-term investing. In this analysis, we will detail the fundamental advantages of Chevron stock and look at its financial and technical prospects based on hard data. This will allow us to provide a definitive answer to whether you should include Chevron stock in your portfolio.
Finally, we will also introduce you to an ideal online broker to buy Chevron stock and many others and show you step-by-step how to quickly open an account and start to buy stocks today.
More than just the second-largest oil company in the United States, Chevron is a multinational corporation with various activities in the Energy sector, and is involved in all aspects of the oil and gas industry. This includes exploration, production and refining, marketing, petrochemicals, and the production of oil derivatives and by-products.
One of the most significant news stories of the last decades for Chevron was its merger in 2000 with Texaco, giving birth to Chevron Texaco stock. This name was then dropped and returned to "Chevron" five years later. But beyond these varied oil activities, Chevron has long been working toward a clean energy future. For example, Chevron is the world's largest producer of geothermal energy, but it also produces solar energy, wind power, and biofuels.
Thus, Chevron stock is a stock bet that will satisfy those who want to take advantage of a potential rise in oil, as well as those who want to bet on renewable energy without taking the risk of betting on a younger, smaller, more specialized company.
Chevron Stock Price History and Profile
Chevron stock is listed in the United States on the NYSE, under the symbol CVX and the ISIN code US1667641005. Its market capitalization is $186 billion. It's a component of most major stock market indexes such as the S&P 500 or the Dow Jones.
It is up 25% year-over-year as of mid-September 2021, during which time it has traded between a low of $65 and a high of $113. It currently has a P/E of 52.6, which makes it a relatively cheap stock compared to its peers. Let's now take a look at the historical evolution of Chevron's share price
Chevron Stock Price History
The history of Chevron stock quote goes back to the late 1960s, but we will focus below on its evolution since the 2000s, for the sake of relevance.
As we can see on the Chevron stock chart above, the stock was from May 2003 to May 2008 on a clear uptrend that saw it more than triple in value. The remainder of 2008 and early 2009 then saw a severe correction, which in turn gave way to a multi-year uptrend that led Chevron stock to its all-time high marked in July 2014 at $135.
Chevron stocks then posted a 1-year correction, which saw its value roughly halved, before a new uptrend phase that saw Chevron's stock price climb back near its all-time highs in January 2018. After a few years of consolidation with no underlying trend, Chevron share then posted a brutal plunge in early 2020, particularly due to the covid-19 pandemic. The stock thus reached a multi-year low near $50 in March 2020.
Since then, Chevron stocks have been trending bullish again, although the stock has yet to erase the bearish impact of the pandemic fully. This suggests that it has more upside potential than other stocks that have already surpassed their pre-pandemic levels.
Why Invest in Chevron Share? Points to Consider
When deciding which stock to buy, you should first look at its fundamental profile and activity. We'll do just that below by focusing on the main concrete reasons why investors buy Chevron stock.
A Bet on the Reopening of the Economy
Chevron's second-quarter 2021 results showed that the company is benefiting greatly from the reopening of the economy following the release of covid-19 vaccines. Yet, the reopening of the economy is still far from complete, which implies that Chevron's financial results should improve further in the coming quarters.
Indeed, international travel, for example, is still far below its pre-Covid-19 level. In addition, most economic studies expect oil demand to increase in short and medium-term.
An Investment in Clean Energy
Although Chevron derives the vast majority of its revenues from its oil business, it seems to be well aware that sooner or later the world will move away from oil, whether because of depleting reserves or environmental considerations. Indeed, Chevron is also a producer of renewable energy. For example, it claims to be the world's largest producer of geothermal energy and produces solar and wind power.
Thus, Chevron is paradoxically also a bet on renewable energy. And unlike many young, specialized companies, Chevron has the financial resources to fund research in this area and make massive investments that will pay off in the very long term and prepare Chevron for an oil-free world.
Chevron Stock Dividends Are on the Rise since 34 Years
Finally, another primary reason why investors like Chevron stock is its high dividend, which currently represents a yield of more than 5%, providing a comfortable income. More importantly, Chevron stock dividend has increased for the past 34 consecutive years, putting the stock in the very closed category of dividend aristocrats.
Chevron Stock Forecast and Prediction
Now that we have outlined the tangible reasons why Chevron stock is a good investment, below we will look at the speculation about the potential future of Chevron stock. To do this, we'll look at financial forecasts, technical forecasts, as well as analyst recommendations.
Chevron Stock Forecast: Revenues and Earnings
Chevron's latest financial results were very satisfactory, exceeding expectations in both revenue and earnings. Revenues were $37.6 billion, up 71% year-over-year from $36.33 billion expected. EPS was $1.71 versus $1.59 expected, compared to a loss per share of $0.93 in the same quarter last year.
For the next quarter, whose results are expected at the end of October, the analysts' consensus forecast is for EPS of $2.08, which is 18 times higher than in the same quarter last year. In addition, it should be noted that Chevron's EPS has exceeded expectations in 9 of the last 12 quarters. On the revenue side, analysts are forecasting $39.93 billion in revenue for Q3 2021, up 56% year-over-year.
Chevron Stock Forecast: Technical Analysis
The Chevron stock chart shows an uptrend that has lasted for more than a year, after the stock marked a low near $50 in the face of collapsing oil prices amid the onset of the covid-19 pandemic. This allowed Chevron stock quote to mark a 2021 annual high at $113 for now.
Since then, the stock has undergone a correction, and is now trading below $100, but there are several reasons to believe that the correction is over and that Chevron stock is ready to embark on a new bull run.
Indeed, it has found strong support in the $93/95 area, where its 50- and 100-week moving averages are also located, reinforcing the importance of this area. With Chevron stock currently near this key support, Chevron stock price today could be ideal for a buy.
Chevron Stock Forecast: What do Analysts Think?
There are currently 15 professional analysts following Chevron stocks according to TipRanks. Ten of them recommend buying, and five display a neutral opinion. More importantly, these analysts' average target of $126 implies a potential upside of more than 30% over Chevron stock price today.
It is also interesting to note that the analyst with the lowest target for Chevron stock is targeting 110$, which is more than 10% above Chevron stock price today. The most optimistic analyst is targeting $149, which implies a potential upside of about 50%.
Where to Buy Chevron Stock
It is sometimes difficult to choose an online broker as there are so many. That's why we've reviewed many of them to determine which is the best one to buy Chevron stock. And the name that came up most often was the broker ZFX.
ZFX, a World Class MT4 Broker
This is a relatively new broker, as it was only created in 2018. However, its seriousness is not to be questioned, as the FCA regulates ZFX. ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How Can I Buy Chevron Stock Easily?
Buying Chevron stock through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. All you have to do is follow these steps:
- Register with ZFX
- Verify your ZFX account
- Make your first deposit
- Buy Chevron stock
Let's go through each of these steps in detail.
1 - Register with ZFX
For this first step, you will need to go to the ZFX broker's website. Then, click on the "open an account" button. You will then have to fill in a registration form with several personal details. This includes your phone number, which will be verified by SMS.
After filling out the form, click on the "next" button at the bottom of the page. Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2 - Make your first deposit
You will also be asked to make your first deposit. To do this, click on the "make a deposit" button on the screen displayed immediately after registration.
You will then be asked to choose a payment method. Let's take Mastercard as an example:
On this screen you will be asked to indicate the deposit amount and then click on the "Confirm Deposit" button. You will then be asked for your credit card information before the final validation of the payment.
3 - Account verification
Finally, it will also be necessary to proceed with the account verification by sending supporting documents.
As shown in the image above, you will need to upload the documents directly to the ZFX website..
4 - Buy Chevron stock
Once ZFX validates your documents, you will then be ready to buy Chevron stocks through the MT4 platform which ZFX provides.
Bottom Line: Should you buy Chevron stock?
So there are many good reasons to buy Chevron stock. It is indeed a bet on the increase of the oil demand in front of the reopening of the economy following the pandemic of covid-19. But it is also an investment on renewable energy. Indeed, Chevron has understood that its long-term future rests on clean energy.
Chevron's latest financial results, as well as its expected next release, show a strong financial health. This should allow it to continue paying a solid dividend. In fact, professional analysts overwhelmingly recommend buying the stock, with targets that imply a very strong upside potential.
If you too think Chevron stock might be a suitable addition to your portfolio, we invite you to learn more about ZFX brokerage, which will allow you to invest in Chevron and many other stocks under ideal conditions.