We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
READ ALSO Jim Cramer on Tesla and Other Stocks and Jim Cramer is Talking About These 12 Stocks
Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial view of an oil rig at sea, the sun glinting off its structure.
Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 64
Cramer mentioned Chevron Corporation’s (NYSE:CVX) dividends, buybacks, and the stock’s lagging performance.
“Finally, we hear from two biggest, biggest oil companies, Chevron and Exxon… We just got back from a Chevron platform in the Gulf of Mexico. I got to be impressed by the way. Chevron’s been able to return a huge amount of capital in dividends and buybacks. Yet, you know what? It’s still a laggard. It’s the worst performer in the group… I think people should switch their allegiance and like Chevron, there’s Mike Wirth who knows what he’s doing.”
Chevron (NYSE:CVX) is a prominent player in the energy sector, primarily engaged in the exploration, production, and transportation of crude oil and natural gas. In the second quarter, the company returned $6 billion to shareholders, which included $3 billion in dividends and $3 billion in share repurchases. It marked the ninth consecutive quarter in which the company has distributed over $5 billion in cash to shareholders.
Over the past two years, the company has returned more than $50 billion in cash to its shareholders, showing a consistent approach to capital management. On September 30, Chevron (NYSE:CVX) announced that the Federal Trade Commission (FTC) had completed its antitrust review concerning the merger with Hess Corporation. As part of the agreement to finalize this merger, it was decided that Hess CEO John Hess would not join the Chevron Board of Directors.
Overall CVX ranks 15th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of CVX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.