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Chevron stock forecast: Could the US oil giant reach new highs in 2023?

By  Yoke Wong

Edited by Jekaterina Drozdovica


Updated

Chevron stock forecast: Will it fall lower? Forex graph with businessman working on computer in office on background. Concept of hardworking. Double exposure.
Rising oil and gas prices boost Chevron stock price to a record high in 2022 as the group accelerates its low-carbon investments. Photo: Peshkova / Shutterstock.com

American oil and natural gas producer Chevron’s (CVX) share price was stable over the past month as the company completed its acquisition of renewable energy supplier Beyond6 amid soaring profits.

Chevron (CVX) live stock price

The CVX stock price enjoyed record highs in November 2022 amid soaring commodity prices and restricted supply. Will it maintain the momentum? Here we take a look at what factors are shaping the Chevron stock forecast.

What is Chevron?

Chevron Corporation is an American multinational energy company. The company’s predecessor, Pacific Coast Oil Co., was incorporated in San Francisco in 1879 and consolidated into Standard Oil Co by 1900. 

Although Chevron’s headquarter is in San Ramon, California, the New York Stock Exchange (NYSE)-listed company operates oil and gas production facilities in the Americas, Australia, Asia, Africa and Europe. As of January 2023, it is the second largest integrated energy company in the US after Exxon Mobil (XOM). 

The group produces crude oil, natural gas and downstream oil and gas products. It also operates five US refineries with combined capacity to process more than one million barrels of oil a day, as of January 2023.

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Chevron’s stock price soar on high oil prices

Although CVX stock price has eased from November 2022 highs in January 2023, it remained nearly 40% above the year-ago levels.

The stock has been climbing since 2022 as post-Covid demand boosted global energy consumption. CVX stock price on NYSE hit an all-time high at $188 in mid-November 2022 and has since fallen as recession fears hit demand. Despite the decline, Chevron’s share price remained significantly higher than average price level in the past two years. 

At the height of the global Covid pandemic in 2020, lockdown measures across the world slashed energy demand, causing oil prices to tumble. This led to the CVX share prices falling to as low as $59.39 in mid-March 2020. It remained largely below $100 for the rest of 2020. 

Chevron stock price, 2018 - 2021

Chevron’s push for renewables

Chevron announced on 3 January that its subsidiary Chevron USA has acquired full ownership of Beyond6 and its nationwide network of compressed natural gas stations in the US.

Beyond6 is a company specialising in renewable compressed natural gas (R/CNG) and it builds, owns, operates, and maintains a network of R/CNG stations in the US. 

The acquisition is part of Chevron’s goal to grow its low-carbon business and the group has made a flurry of investments in renewable energy and low-carbon technologies over the past year. 

In December 2022, Chevron invested in Svante, a carbon capture and removal technology start-up, and entered a joint-venture with Baseload Capital to develop geothermal projects in the US. 

According to Chevron’s investor presentation in November 2022, the producer aims to produce 100 million barrels a day of renewable fuels and 150,000 tonnes of hydrogen a year by 2030. It also set a target of capturing and offsetting 25 million metric tonnes of carbon a year. 

Chevron is also targeting to reach zero routine flaring by 2030. Gas flaring is an industry practice where producers burn excess methane production at gas extraction sites or processing plants. By 2050, the producer hopes to achieve net zero emissions in its upstream operations. 

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High oil prices boost Chevron’s 2022 earnings

Following Russia’s invasion of Ukraine in March 2022 and the unprecedented level of Western sanctions imposed on the country, the global Brent crude oil prices spiked above $120 a barrel and remained above the $100 level for much of last year. This has boosted Chevron’s earnings in 2022 and lifted its stock prices. 

Brent crude oil live price

Chevron’s adjusted earnings in the third quarter of 2022 surged to $10.78bn, more than doubling from $5.69 bn in Q3 2021. The group expected its adjusted earnings to reach $28.69 bn in 2022, an increase of 83.8% year on year. 

However, according to a recent Wall Street estimate compiled by S&P Capital IQ, Chevron’s profit was set to reach $37 bn in 2022. Chevron was expected to announce its Q4 earnings by the end of January. 

Amid higher earnings, the group has paid $2.7bn dividends and repurchased shares valued at $3.75bn in Q3 2022. 

Chevron’s earnings in $ million

 Q3 2021FY 2021Q3 2022FY 2022
Adjusted earnings 5,68715,60810,78428,692
Adjusted earnings per share 2.968.135.5614.74

Source: Chevron

During Chevron’s Q3 earning release on 28 October 2022, group CEO Mike Wirth said the company “is increasing investments and growing energy supplies, with our Permian production reaching another quarterly record.

“We’ve also taken important steps to position both our traditional and new energy businesses to help meet the world’s growing demand for our products.”

Chevron stock forecast for 2023 and beyond

Despite the uncertainty in the oil and gas market, analysts were mostly bullish on the Chevron share price forecast for the next one to five years.

According to StockAnalysis.com data compiled as of 5 January, the average 12-month CVX stock forecast from 34 analysts was projected at $196.65 in 2023. The highest prediction saw the Chevron share price reach $226.75, while the lowest saw it fall to $162.61. The average analyst recommendation for Chevron stock was ‘buy’, as many believed the share price could outperform the market in the next 12 months.

The analysts’ consensus on financial data website TipRanks over the past three months indicated a ‘moderate buy’, with the average CVX stock price target at $189.43, as of 5 January.  According to the website, hedge fund buying activity for the stock increased by 3.4 million shares since the fourth quarter 2022.

Algorithm-based price prediction website Wallet Investor’s Chevron stock forecast for 2023 suggested the stock could trade at $196.90 and hit $269.40 in 2028.

Gov.capital held the most bullish Chevron stock forecast. The algorithm-based website predicted the stock to hit a new record high at $266.095 in the next 12 months. Its Chevron stock forecast for 2025 saw the stock exceed $500. 

Final thoughts

Remember, analysts’ and algorithm-based Chevron stock predictions can be wrong and should not be used as a substitute for your own research. Always conduct your own due diligence, looking at the latest news, technical and fundamental analysis, and a wide range of commentary before trading.

Note that past performance isn’t indicative of future returns. And never trade more money than you can afford to lose.

FAQs

Is Chevron a good stock to buy?

According to StockAnalysis.com data compiled as of 5 January, the average analyst recommendation for Chevron stock was ‘buy’. However, their views can be wrong and only you can decide if Chevron is the right investment for you. This would depend on your investing goals and portfolio composition. You should always conduct your own research. 

Note that past performance isn’t indicative of future returns. And never trade more money than you can afford to lose.

Will Chevron stock go up or down?

According to StockAnalysis.com data compiled as of 5 January, the average 12-month CVX stock forecast from 34 analysts was projected at $196.65 in 2023. The highest prediction saw Chevron share price to rise to as high at $226.75, and the lowest to fall to $162.61. However, remember that their views can be wrong and shouldn’t be relied upon. Oil companies' share price movements can be driven by energy supply and demand.

Should I invest in Chevron stock?

Only you can decide if you should invest in Chevron stock and this will depend on your investment goals, risk profile and portfolio composition. Please do your research before making any investment decision and remember that Chevron stock price forecast by analysts could be wrong. Note that past performance isn’t indicative of future returns. And never trade more money than you can afford to lose.

Markets in this article

Oil - Brent
Brent Oil
84.580 USD
-0.522 -0.610%
CVX
Chevron
155.75 USD
0.43 +0.280%
XOM
Exxon Mobil Corp (Extended Hours)
114.10 USD
0.2 +0.180%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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