The oil sector is a cornerstone of the global economy, fueling a vast array of industries. It comprises companies involved in the exploration, extraction, refining, and marketing of oil and petroleum products. This sector is known for its cyclical nature, with prices influenced by geopolitical, economic, and environmental factors. Investing in oil stocks offers exposure to this crucial energy market.
Investing in oil stocks can be lucrative due to the sector’s significant impact on global energy supplies. These investments often promise strong dividends and the potential for capital appreciation. However, they also come with risks. The oil market is notoriously volatile. Prices can fluctuate widely based on global events and trends in renewable energy.
Moreover, the shift towards sustainable energy sources poses a long-term challenge for the oil sector. This transition could affect the future demand and valuation of oil stocks. Still, for those with a keen eye on market trends and geopolitical events, oil stocks offer unique opportunities. Moreover, here are two oil stocks to watch in the stock market today.
Oil Stocks To Invest In [Or Avoid] In 2024
Chevron Corporation (CVX Stock)
Leading off, Chevron Corporation (CVX) is a multinational energy corporation, one of the world’s leading integrated energy companies. Chevron engages in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production; refining, marketing, and transport; chemicals manufacturing and sales; and power generation.
At the beginning of this month, Chevron reported a beat for its fourth quarter 2023 financial results. The report shows that the company posted Q4 2023 earnings of $3.45 per share, with revenue of $47.18 billion. This was compared to analysts’ consensus estimates for the quarter which was an EPS of $3.29, and revenue estimates of $51.33 billion.
In 2024 so far, shares of CVX stock are up 2.48% YTD. Meanwhile, during Thursday’s late morning trading session, Chevron stock is trading higher on the day by 0.64% at $153.11 a share.
Exxon Mobil (XOM Stock)
Next, Exxon Mobil Corporation (XOM) is an American multinational oil and gas corporation, known as one of the largest publicly traded oil and gas companies in the world. It has a wide array of operations that include exploring for and extracting crude oil and natural gas, manufacturing petroleum products, and selling and distributing these products.
Just this month, Exxon Mobile also notched in an earnings beat for its most recent fourth quarter 2023 financial results. Diving in, the energy giant reported Q4 2023 earnings of $2.48 per share versus estimates of $2.21 per share. As well as posting revenue for the quarter of $84.34 billion, this is compared to estimates for the quarter which were $91.81 billion.
Year-to-date, shares of XOM stock are up 1.10% thus far. While, during Thursday’s late morning trading session, Exxon Mobil’s stock is trading up 1.22% on the day so far at $103.46 a share.