Chevron Stock: Buy, Sell, or Hold?
Chevron (NYSE: CVX) is one of the largest energy companies on the planet, sporting a massive $270 billion market cap. It competes with integrated majors like ExxonMobil (NYSE: XOM), Shell (NYSE: SHEL), (NYSE: BP), and TotalEnergies (NYSE: TTE).
Is there a reason why investors would want to own Chevron stock rather than its peers? The answer is a very clear "yes." Here's what you need to know.
Chevron, ExxonMobil, Shell, BP, and TotalEnergies all use the same basic business model. They produce oil and natural gas, transport it, process it, and sell it. This means their businesses span from the upstream (drilling) through the midstream (pipelines) and all the way to the downstream (chemical and refining). The key to this approach is that different segments of the energy sector perform differently at different times, which helps to soften the industry's natural peaks and valleys. For example, downstream businesses can benefit from low oil prices, which are a cost center for this segment of the industry.
Source Fool.com
