Is Chevron Stock a Buy?
When it comes to the energy sector, Chevron (NYSE: CVX) is probably one of the most boring companies you can find. And that's actually a huge selling point today, since energy prices have already rebounded strongly from their low point during the darkest days of the coronavirus pandemic in 2020. Here's why this integrated energy giant should be on your short list if you are looking at buying shares of an oil company today.
The energy sector is highly cyclical, with often dramatic oil and natural gas price moves leading to equally shocking stock price moves for industry participants. That's not good or bad, it just is. However, if you don't take this fact into consideration when investing in an energy stock, you are likely to be surprised when the tides inevitably turn.
Right now oil and natural gas prices are relatively high, so a lot of energy companies look like rock stars. If history is any guide, that won't last forever, and you'll want to own a stock like Chevron that tends to be less volatile over time. Sure, that means it won't participate as much on the upside, but saving yourself from huge losses can easily make up for that.
Source Fool.com
