Energy Stocks Buck the Trend

While the broader market took a beating on Thursday, Chevron Corporation (CVX) was having a very different kind of day. The energy giant's shares hit a fresh 52-week high of $187.90, trading up 1.54% to $186.71 even as the Dow Jones and S&P 500 slumped.

The energy sector as a whole gained 1.31% on the day, providing a helpful tailwind for oil producers. It's one of those moments where sector rotation tells the real story—when everything else is red, energy is suddenly the place to be.

Zoom out a bit and Chevron's performance looks even more impressive. The stock has climbed 18.57% over the past year, trading 5.7% above its 20-day simple moving average and a solid 21.2% above its 200-day SMA. The relative strength index sits at 66.68, approaching overbought territory but not quite there yet.

What's Driving the Rally?

Two things are powering Chevron's momentum right now. First, the company recently announced lease agreements with the Hellenic Republic for four offshore blocks in Greece. Chevron holds a 70% operating interest in the project alongside HELLENiQ ENERGY, expanding its Mediterranean presence in a meaningful way.

Second, crude oil prices jumped 2.29% to $66.54, driven by escalating U.S.-Iran tensions. When crude rallies, oil and gas stocks tend to follow, and exchange-traded funds like the United States Oil Fund LP ETF (USO) enjoy the ride too.

Looking Ahead to Earnings

Chevron's next earnings report drops on May 1, which feels like forever from now in market time. With more than two months until that update, investors are focused on strategic moves and sector performance rather than quarterly numbers.

When the report does arrive, analysts are expecting some softness:

• EPS Estimate: $1.51 (Down from $2.18 year-over-year)
• Revenue Estimate: $46.90 billion (Down from $47.61 billion year-over-year)
• Valuation: P/E of 27.7x (Indicates premium valuation)

What Analysts Are Saying

The consensus rating on Chevron is a Buy, with an average price target of $172.75—which, interestingly enough, sits below where the stock is trading now. Recent analyst activity has been a mixed bag:

• Wells Fargo: Overweight rating with a target raised to $204.00 (Feb. 2)
• Morgan Stanley: Overweight rating but lowered target to $174.00 (Jan. 23)
• Barclays: Equal-Weight rating with target raised to $166.00 (Jan. 21)

Wells Fargo is clearly the bull in the room here, seeing upside even from these elevated levels. Morgan Stanley and Barclays are more cautious, with price targets that suggest limited upside from current prices.

Performance Metrics

Chevron's market positioning looks solid based on key performance indicators:

• Value Rank: Strong (Score: 76.75) — The company is trading at a premium, reflecting its robust market position and investor confidence.
• Momentum Rank: Bullish (Score: 70.6) — Chevron shows strong momentum, outperforming many peers in the energy sector.

The combination of strong value and momentum scores suggests Chevron isn't just riding a temporary wave—there's fundamental strength backing up the price action.