Is Chevron Corporation (CVX) A Good Stock To Buy?

Is CVX a good stock to buy now? We came across a bullish thesis on Chevron Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on CVX. Chevron Corporation's share was trading at $186.76 as of February 27th. CVX’s trailing and forward P/E were 28.17 and 24.27 respectively according to Yahoo Finance.

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. CVX remains well positioned despite a volatile 2025 for crude prices, with North American benchmark oil sliding from the low $70s at the start of the year to the high $50s amid heavy bearish sentiment. Even so, the company continues to demonstrate resilience, supported by steady oil and gas demand and a stronger backdrop for natural gas.

Chevron offers an appealing long-term entry point, underpinned by strong cash flow generation and disciplined capital allocation that sustains shareholder returns even in softer commodity environments. The company’s most significant strategic move this year was completing its acquisition of Hess Corporation, securing a 30% stake in the prolific Stabroek block offshore Guyana.

This asset meaningfully enhances Chevron’s production growth outlook over the next several years, complementing ongoing natural gas development in the eastern Mediterranean and continued oil and gas expansion in the Permian Basin. Operational momentum, rising output, and persistent cost controls position the company to benefit disproportionately from any rebound in commodity prices.

Year to date, Chevron has delivered an approximately 8% total return and increased its dividend by 4.9%, reflecting its commitment to returning capital. Another dividend hike is expected next month, and with higher commodity prices and incremental production growth ahead, the setup points to stronger total returns. Overall, Chevron combines scale, financial strength, and high-quality assets to offer a compelling risk-reward profile for long-term energy investors.

Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, which highlighted its low-cost Permian Basin assets, diversified operations, carbon capture ambitions, and Berkshire Hathaway’s ownership despite debt concerns. OXY’s stock price has appreciated by approximately 23.32% since our coverage. @MoneyShow shares a similar view but emphasizes Chevron’s production growth and disciplined capital allocation.

Chevron Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held CVX at the end of the fourth quarter which was 89 in the previous quarter. While we acknowledge the risk and potential of CVX as an investment, our conviction lies in the belief that some 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.