A Nooner With Chevron Corporation

I could waste a lot of your time with graphs, charts, and other assorted worthless information all intended to show you that I know something about something when it comes to this company. But the truth is, I don’t know squat about this company. My intent is to provide you with a brief overview of the company’s various valuations so you can determine if you personally have any investment interest.

What They Do
Chevron Corporation, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, and power and energy services. Listed competitors are BP plc, Exxon Mobil Corporation, and Royal Dutch Shell plc.

Short-Term Target
My short-term target for the stock is $124.73, with an initial trailing stop set at $117.60. With a current price of $119.39, upward price movement will find resistance at $122.31 and again at $124.93, with final resistance showing at $127.17. Downward price movement will find support at $117.65 and again at $115.30, and leave support at $112.58.

Momentum Target
My momentum target for the stock is $270. Momentum targets are determined by overlaying a company’s most recent annual EPS, its year-over-year earnings growth, and the current yield of a 10-year treasury. Momentum investing often requires investors to trade in stocks that have already enjoyed significant gains while making no allowances for overall market corrections or the sustainability of a company’s earnings.

Growth Target
My growth target for the stock is $186. Growth targets are determined using a company’s year-over-year earnings growth, year-over-year PE growth, and year-over-year price growth.

Fair Value Investing
Fair value investing, more commonly known as value investing, requires investors to consider a company’s overall financial condition including past and future earnings growth, free cash flow, both book and tangible book values, net current asset value, and many other valuation metrics. For many fair value investors, the minimum required hold is five (5) years. My fair value estimate for the stock is $253.

Prior Average Valuations
My average valuation for the prior five year period of FY 2013 through FY 2017 was $98. Earnings during that time period averaged $15.28 per year.

Five Year Growth of $10K
If you had invested $10K in the stock five years ago (12/13), you would have received 80.06 shares of stock with a cost basis of $124.91 per share. Had you held the stock for five years and then sold it (12/18), you would have sold for $108.79 per share. You would collected $343.20 in dividends, and your initial $10K investment would have returned to you $9,053 or (2)% per year.

Chevron Corporation (NYSE: CVX) – FYE 12/2018 – UNDER VALUED The stock is currently trading at levels below my $152 initiate target. Please See Linked PDF Worksheet

There you are, as promised, short and to the point.

Wax
Posted on 02/25/19