Oil stocks to buy ahead of next OPEC meeting


Unlike most oil and gas stocks, Chevron (CVX) has appreciated nicely on the year, and the stock is currently trading just shy of its 52-week high, and not far below its record high. Earnings growth this year is forecast to be 318%, and next year analysts see earnings rising by 23.9%. The current growth estimates are impressive, and could be greatly understated if oil prices are able to extend recent gains on news of more OPEC cuts. The stock’s valuation is a bit of a concern, with a P/E of 38.6, but given the robust growth estimates the valuation on its own will not be enough to derail this stock. CVX trades at $119.22, which is pretty much in-line with the stock’s $119.50 average price target, but if the company is able to post positive earnings numbers on October 27 analysts will likely increase their targets to allow the stock to move higher.


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Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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