Chevron (CVX) reported fourth-quarter earnings per share (EPS) of $1.49 vs. $1.95, with the decline reflecting lower commodity prices from the prior year. Results were $0.04 better than expectations.
The stock continues to be hurt by the sharp decline in oil since the start of the year, which has accelerated recently due to the outbreak of the coronavirus. I remain hopeful that a rise in the global economy and the eventual quarantine of the disease will cause a turn around in the price of oil.
Meanwhile, Chevron is doing well over the things it can control, with production up 4.6% last year and another increase of up to 3% scheduled for this year. The 4.3% dividend yield is secure and will attract investors to the name once the price of oil stabilizes.
Continue to buy CVX. My new buy under price is $115 and my new target is $125.