Analyst: Buy Chevron Stock After Earnings

It's been a volatile stretch for Chevron shares

Nov 5, 2018 at 9:51 AM
facebook twitter linkedin


The shares of Chevron Corporation (NYSE:CVX) are trading up 3.3% at $118.01, after the Dow stock received a pair of bullish brokerage notes over the weekend. While Credit Suisse upgraded CVX stock to "outperform" from "neutral" -- citing "compelling" valuation -- Berenberg raised its Chevron price target to $140 from $135, representing expected upside of 22% to Friday's close at $114.73.

It's been a volatile stretch for CVX, based on its 30-day historical volatility of 29.1%, which ranks in the 92nd annual percentile. More specifically, the oil stock plunged 15.7% from its Oct. 10 peak at $127.60 to its Oct. 29 low at $107.54. Chevron is now trading near a 38.2% Fibonacci retracement of this recent plunge, thanks in part to last Friday's 3.2% post-earnings pop.

Even with the shares still in the red on a year-to-date basis, the majority of the 16 analysts covering Chevron maintain a "buy" rating, with not a single "sell" on the books. Plus, the average 12-month price target of $146.23 is a 27% premium to current trading levels.

Elsewhere, short interest hit a three-year low of 16.66 million shares on Sept. 15. While the number of bearish bets rose 6.4% over the two most recent reporting periods, the 17.73 million shares still represents less than 1% of CVX's available float.

 

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners