Is Chevron Stock a Buy?
The stock market hasn't been kind to fossil fuel stocks in 2020. So far this year, the Energy Select Sector SPDR ETF, which tracks the oil and natural gas sector, is down 40% compared to a respectable 10% gain for the S&P 500. In August, one of the biggest names in oil and gas, ExxonMobil (NYSE: XOM), was removed from the Dow after nearly 100 years.
Weeks later, Chevron (NYSE: CVX) (which has been in the DJIA since 2008) replaced ExxonMobil as the largest oil major by market capitalization. The honor may have rung somewhat hollow, however, considering that shares of both companies are still way down this year. Chevron only topped Exxon because it's down by less.
Despite poor performances by companies throughout the fossil fuel industry, there could be cause for optimism about Chevron in 2021. Here are a few reasons why picking up a few shares of Chevron could be a good decision for you.
Source Fool.com
