Is Chevron Corporation (CVX) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

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).

Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 81

Short Interest as of Apr 30, 2025: 3.54%

Chevron Corporation (NYSE:CVX) is involved in chemicals and integrated energy operations. It generates its revenue through the Downstream and Upstream segments.

The stock has experienced minor volatility as BNP Paribas Exane recently downgraded it from Outperform to Neutral and decreased its price target to $140. The bank lowered its price target, citing the company’s significant exposure to oil operations, as it is cautious about the oil price outlook for the next 12 to 18 months.

On the flip side, the natural gas business is poised to be a growth driver for the company. This part of the business has already contributed to its strong financial performance. It profited from higher natural gas price realization, specifically in international markets. Currently, natural gas is priced at $3.53, demonstrating an 84% rise from the previous year’s gas price.

Increasing demand for data centers is likely to increase natural gas prices and demand further. Data centers currently account for 3% of the global electricity supply. By 2030, the number of data centers is anticipated to increase from 6,111 to over 8,000. As these power-hungry installations rely strongly on electricity, and 43% of electricity is generated from natural gas, the demand is likely to stay elevated.

Overall, CVX ranks 22nd on our list of best and worst Dow stocks. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this 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.