Barclays Maintains Equalweight on Chevron (CVX), Hess Acquisition Improves Outlook
Chevron Corporation (NYSE:CVX) ranks among the top stocks for an early retirement portfolio. On June 18, Barclays maintained its Equalweight rating on Chevron Corporation (NYSE:CVX) with a $152 price target.
Pixabay/Public Domain
Given Chevron's organic growth since 2023, the research firm stated that the Hess acquisition is now 'modestly accretive to CVX's cash flow multiples and leverage albeit still dilutive on FCF yield.' According to the firm's analysis, the Hess deal, which has drawn attention from investors, now offers Chevron Corporation (NYSE:CVX) a marginally better financial picture than previous projections.
Chevron Corporation (NYSE:CVX) has also acquired over 125,000 net acres of lithium-rich property in Southwest Arkansas and Northeast Texas, marking a strategic entry into the lithium market. The company took the first step toward building a domestic lithium company on a commercial scale with the acquisition of TerraVolta Resources and East Texas Natural Resources LLC.
Chevron Corporation (NYSE:CVX), based in San Ramon, California, is a major American global energy company that specializes in the oil and gas industry. Founded as the Standard Oil Company of California, it is the second-largest direct descendant of Standard Oil.
While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Read More: and
Disclosure: None.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Trump's 'One Big Beautiful Bill' is getting more expensive as the world's attention is on Iran
The long-awaited summer collision course for President Trump's economic agenda is here and now competing for attention with geopolitics. The competing storylines are playing out — just in parallel — after a weekend where the president's "One Big Beautiful Bill Act" saw a new, higher price tag and the removal of key provisions in developments that were fully overshadowed by a weekend attack on Iran. Trump's priorities for taxes and the debt ceiling — not to mention tariffs — still face key deadlines in the weeks ahead, even as foreign affairs take center stage. On Saturday evening, shortly after the attacks on Iran commenced, Congress's Joint Committee on Taxation (JCT) even released an analysis that made official how recent Senate changes to Trump's tax-cut bill are likely to increase the package's price tag by hundreds of billions of dollars. The group found that the Senate's changes on the tax front — once economists untangled a key budget gimmick — mean the bill will potentially add about $4.2 trillion to the deficits in the years ahead if passed as is. The bill is also undergoing a close examination by the Senate parliamentarian, who is moving section by section and has already deemed some provisions — such as defunding the Consumer Financial Protection Bureau (CFPB) and making cuts to the Supplemental Nutrition Assistance Program (SNAP) — are not in line with Senate reconciliation rules. More changes are likely coming this week that could further increase the price tag and political pressure, even as key Republicans are still saying they will vote no, throwing into doubt a GOP goal of final votes within days. It all could also have near-term economic impacts. Wells Fargo head of global fixed income strategy Brian Rehling said in a recent Yahoo Finance appearance that developments in the bill could be "more consequential" to things like interest rates for the time being over even signals from the Federal Reserve. These developments come just weeks before Trump and the Republicans' self-imposed deadline to get the bill signed into law by July 4. Senate Majority Leader John Thune has said that means the Senate will need to pass this bill this week to keep the timeline on pace. The weekend's Joint Committee on Taxation analysis focused specifically on the Senate Finance Committee's tax proposals and offered a headline number that would appear to be good news for fiscal hawks: It found the projected cost of the revised bill comes to about $441 billion over the coming decade. But that calculation came from an accounting maneuver known as a "current policy" baseline, which allows the bill to be calculated assuming current tax levels stay the same. That means Congress can say the cost of extending expiring provisions in the 2017 Tax Cuts and Jobs Act is free, at least for accounting purposes. Republicans defend the practice, with Senate Finance Committee Chair Mike Crapo offering that it "more accurately reflects reality." But the bottom line is that these zeroed-out tax extensions are projected to add about $3.8 trillion to the national debt, versus the scenario of Congress doing nothing. "Ignore the $441 number, which is both trying to hide the cost of extensions and gimmick some specific policies to make them look cheaper," offered Marc Goldwein of the Committee for a Responsible Federal Budget following the release. Andrew Lautz of the Bipartisan Policy Center also offered a detailed breakdown of the differences brought by the assumptions, such as how it makes the approximately $2.1 trillion in costs from extending individual tax rate cuts look like they instead come to $83 billion. Goldwein, Lautz, and others say the full price tag that should be considered is the total impact to the nation's debt of $4.2 trillion over the next decade. The new price tag projections also come as Senate parliamentarian Elizabeth MacDonough is going through the bill line by line to see if it complies with the Senate's strict reconciliation rules. It's part of a wonky Senate process known colloquially as a "Byrd bath," after a rule enshrined by Robert Byrd of West Virginia, that sets limits on what can be fast-tracked and what is subject to the normal 60-vote threshold. MacDonough has already analyzed the Banking, Commerce, Judiciary, and Homeland Security committee portions of the bill and found a series of provisions that must be taken out. So far, pieces that appear set to be removed from the bill include one that would have placed a funding cap on the Consumer Financial Protection Bureau (CFPB) and others that cut the SNAP program. The apparent removal of cuts to the SNAP program around state matching funds could have a significant fiscal impact. Those provisions were previously estimated to save roughly $128 billion. One other closely watched provision by the tech community — to cut broadband funding for states that regulate artificial intelligence — has been allowed to stay in but still faces political opponents pushing to have it struck from the package. It's a series of rulings that Republicans contend aren't yet final but appear set to change the makeup of the overall package. "The Byrd Rule is enshrined in law for a reason, and Democrats are making sure it is enforced," Oregon's Jeff Merkley, the top Democratic senator on the Budget Committee, said in a statement. Even more significant changes could be coming in the days ahead, with the parliamentarian scheduled to take a pass at the Senate Finance Committee's portion of the bill. That's where the biggest ticket items reside, such as tax provisions and Medicaid cuts. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Sign in to access your portfolio
Miami Herald
27 minutes ago
- Miami Herald
Legendary fund manager makes bold S&P 500 prediction as stocks near all-time highs
It's been a remarkable ride since President Donald Trump announced widespread tariffs on April 2. Trump's so-called "Liberation Day" announcement included harsher tariff rates than hoped, forcing investors to rethink their expectations for the U.S. economy. There's evidence that a U.S. economic slowdown is underway, and despite tariff negotiations, tariffs could still push the economy into stagflation or recession. The economic risk raises questions over what's likely to happen to stocks, which usually perform best when a humming economy fattens wallets, allowing households and businesses to ramp up spending. The post-Liberation Day stock market drop lopped 19% and 24% off the S&P 500 and Nasdaq Composite, respectively, from all-time highs in February. Related: Wall Street veteran analyst who predicted stock market rally resets forecast The decline was concerning, but "buy the dip" investors took advantage, boosting buys into extremely negative sentiment with most measures flashing "oversold." Since April 9, when President Trump paused most reciprocal tariffs that had been announced on April 2, the S&P 500 and Nasdaq 100 have rocketed higher, gaining 22% and 30%. The returns have been so significant that major market indexes, including the benchmark S&P 500, are flirting with all-time highs again, prompting veteran Wall Street bond manager Bill Gross to chime in with an updated outlook. Gross has been navigating good and bad markets since 1971. He is the co-founder of Pacific Investment Management Co., or PIMCO, a Goliath money manager with $2 trillion under management. His former role atop the $270 billion PIMCO Total Return Fund earned him the "Bond King" moniker before he left to join Janus Henderson Investors from 2014 to 2019. Given his long track record, investors may want to pay attention to what he's thinking happens next. Many are debating what may happen to the economy next. Some believe that tariffs will tax already cash-strapped consumers later this year, slowing economic activity, as businesses also crimp spending awaiting trade deal insight. Others think tariff risks are fleeting and overblown. The jobs market remains healthy, given that unemployment is relatively low at 4.2%. However, the unemployment rate was 3.4% in 2023, and companies have announced over 696,000 layoffs this year, including 93,816 job cuts in May, up 47% year over year, according to Challenger, Grey, & Christmas. Related: Analyst sends blunt 8-word message ahead of trade deal deadline The weakening jobs market prompted the Federal Reserve to cut interest rates by 1% last year; however, it has since gone to the sidelines, pausing further cuts, over fear that more reductions could fuel inflation, particularly given that the tariff impact is only beginning to be felt by consumers and businesses. The dilly-dallying on monetary policy has prompted sharp criticism, though, including from the White House. Ostensibly, recognizing that tariffs may slow GDP and worsen unemployment, President Trump has threatened to fire Fed Chair Jerome Powell, and his Director of the Federal Housing Finance Agency, William (Bill) Pulte, has called for his resignation. If the economy cools and the Fed is unwilling to budge on interest rates, Congress may not be able to help, given that the country's huge deficit and mountain of debt are impacting fiscal policy. America's deficit exceeds $1.8 trillion, accounting for 6.4% of gross domestic product. At the same time, total public debt outstanding is roughly 122% of GDP, far higher than its 75% level in 2008 during the Great Recession. The economic backdrop threatens earnings growth, but the stock market has so far looked beyond the risks, assuming that trade negotiations will bear fruit, inflation expectations will retreat, and corporate earnings will continue growing, rather than ratchet lower. The fact that Bill Gross has been tracking Wall Street for over 50 years means he's seen plenty of stock market pops and drops, including the Nifty 50, skyrocketing inflation in the 1970s, the S&L crisis in the late 80s and early 90s, the Internet boom and bust, the Great Recession, Covid, and the 2002 bear market. More Experts Fed official sends strong message about interest-rate cutsBillionaire fund manager sends surprising message on trade deficitHedge-fund manager sees U.S. becoming Greece In short, Gross has been-there, done-that, so his take on markets is worth paying attention to. He doesn't see much reason to be a buyer of US Treasuries. Many turn to Treasuries as a safe haven amid economic or geopolitical worry. Given the economic risks listed above, the ongoing Russia/Ukraine War, and a dust-up in the Middle East, we certainly have that. Yet, Treasury yields haven't made much progress lower (remember yields fall when bond prices rise and vice versa). Gross doesn't think there's much incentive for them to fall much further. "Long-term research indicates US 10 year has traded at CPI plus 175," wrote Gross on X. "With inflation at 2.5% that puts a 10 year at 4.25% or so. That was history - but deficits/ensuing supply of bonds/and a weak dollar should keep CPI from falling below 2.5% and the 10-year from falling below 4.25%." The 10-year Treasury note yield is currently 4.29%. As a result, he predicts a "little bear market for bonds." With little incentive to shift portfolios towards Treasuries for gains, what does that mean for stocks? "Stocks are AI-dominated and continue to suggest 1-2% economic growth despite tariffs and geopolitical unrest," wrote Gross. "I suggest a "little bull market" for stocks." Undeniably, artificial intelligence stocks continue to win favor with investors as companies big and small look for ways to exploit it for profit growth. After a pause earlier this year, technology stocks have turned it on lately. The SPDR Technology ETF (XLK) is up about 8% in June alone, and unlike the S&P 500, it has already notched a new all-time high. That said, don't get too excited. Gross doesn't seem to expect much more upside than we've already witnessed. "Nothing dramatic either way for now," concluded Gross. Related: Veteran fund manager sends dire message on stocks The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
35 minutes ago
- Yahoo
BMO Capital Maintains ‘Outperform' Rating on The Mosaic Company (MOS); Raises PT
The Mosaic Company (NYSE:MOS) is one of the 7 best fertilizer stocks to buy according to hedge funds. Nejron Photo/ BMO Capital announced its decision to raise its price target on The Mosaic Company (NYSE:MOS) from $44 to $48 on June 18, 2025. By maintaining an 'Outperform' rating, the analyst expressed optimism about the company's cost-cutting initiatives, which helped it recover margins while optimizing phosphate cash conversion and expanding in Brazil. The Mosaic Company (NYSE:MOS)'s share price is hovering around $35.89 as of the time of writing. The company remains one of the best fertilizer stocks to buy right now. Through its three key segments, Phosphates, Potash, and Fertilizantes, The Mosaic Company (NYSE:MOS) produces key nutrient products like diammonium phosphate and potash for agricultural and industrial use. It operates in North and South America, as well as Asia. While we acknowledge the potential of MOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Marketing Stocks to Buy Right Now and 10 Best Cybersecurity Stocks to Invest in Under $20. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
