Chevron: A Defensive Value Investment As Oil Drilling Falters Demand Concerns

Harrison Schwartz

Summary

Gasoline prices are down again due to global demand concerns. The average US retail gas price is $3.3, down from nearly $3.8 in May.
This year, energy is the worst-performing sector, as investors view oil as cyclical after 2008 and 2020 despite its historically non-cyclical pattern.
The Federal Reserve's surprisingly quick dovish shift and geopolitical should encourage investors to look toward supply side inflation hedges.
Chevron's strong balance sheet, low debt-to-equity ratio, and strategic acquisitions position it well for future growth despite its slightly higher valuation.
In a recession, Chevron's diversified operations and consistent dividend make it a safer bet, particularly given US drilling activity has already declined due to concerns of a slowdown that may not occur.

NicolasMcComber/iStock Unreleased via Getty Images

2024 has been a strong market year, with most high-performing sectors continuing to rise and interest-rate sensitive segments like REITs and utilities rebounding on a lower rate outlook. The worst-performing sector year-to-date is Energy, with The Energy

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The average US retail gas price is $3.3, down from nearly $3.8 in May.</li>\n <li>This year, energy is the worst-performing sector, as investors view oil as cyclical after 2008 and 2020 despite its historically non-cyclical pattern.</li>\n <li>The Federal Reserve's surprisingly quick dovish shift and geopolitical should encourage investors to look toward supply side inflation hedges.</li>\n <li>Chevron's strong balance sheet, low debt-to-equity ratio, and strategic acquisitions position it well for future growth despite its slightly higher valuation.</li>\n <li>In a recession, Chevron's diversified operations and consistent dividend make it a safer bet, particularly given US drilling activity has already declined due to concerns of a slowdown that may not occur.</li>\n</ul>\n<p></p> \n<img src=\"https://static.tigerbbs.com/54014a200e3eac979f4c7bda17e6d175\"> \n<p class=\"item-caption\"> </p> \n<p class=\"item-credits\">NicolasMcComber/iStock Unreleased via Getty Images</p>\n<p></p> \n<p>2024 has been a strong market year, with most high-performing sectors continuing to rise and interest-rate sensitive segments like REITs and utilities rebounding on a lower rate outlook. 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The average US retail gas price is $3.3, down from nearly $3.8 in May.</li>\n <li>This year, energy is the worst-performing sector, as investors view oil as cyclical after 2008 and 2020 despite its historically non-cyclical pattern.</li>\n <li>The Federal Reserve's surprisingly quick dovish shift and geopolitical should encourage investors to look toward supply side inflation hedges.</li>\n <li>Chevron's strong balance sheet, low debt-to-equity ratio, and strategic acquisitions position it well for future growth despite its slightly higher valuation.</li>\n <li>In a recession, Chevron's diversified operations and consistent dividend make it a safer bet, particularly given US drilling activity has already declined due to concerns of a slowdown that may not occur.</li>\n</ul>\n<p></p> \n<img src=\"https://static.tigerbbs.com/54014a200e3eac979f4c7bda17e6d175\"> \n<p class=\"item-caption\"> </p> \n<p class=\"item-credits\">NicolasMcComber/iStock Unreleased via Getty Images</p>\n<p></p> \n<p>2024 has been a strong market year, with most high-performing sectors continuing to rise and interest-rate sensitive segments like REITs and utilities rebounding on a lower rate outlook. The worst-performing sector year-to-date is Energy, with The Energy</p></body></html>","text":"Summary Gasoline prices are down again due to global demand concerns. The average US retail gas price is $3.3, down from nearly $3.8 in May. This year, energy is the worst-performing sector, as investors view oil as cyclical after 2008 and 2020 despite its historically non-cyclical pattern. The Federal Reserve's surprisingly quick dovish shift and geopolitical should encourage investors to look toward supply side inflation hedges. Chevron's strong balance sheet, low debt-to-equity ratio, and strategic acquisitions position it well for future growth despite its slightly higher valuation. In a recession, Chevron's diversified operations and consistent dividend make it a safer bet, particularly given US drilling activity has already declined due to concerns of a slowdown that may not occur. NicolasMcComber/iStock Unreleased via Getty Images 2024 has been a strong market year, with most high-performing sectors continuing to rise and interest-rate sensitive segments like REITs and utilities rebounding on a lower rate outlook. 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