NEW YORK ( TheStreet) -- It's not unusual for investors to proclaim to anyone who cares to listen his or her favorite stock is cheap. But when that stock is also at a 52-week high, it's time to raise eyebrows at the logic.Somehow, Chevron (CVX - Get Report), which fits this criteria, is still flying under the radar despite gaining more than 17% for the year to date.
Here, too, Chevron's performance stands out, especially since Exxon just posted its seventh consecutive quarter of year-over-year production decline. Meanwhile, Exxon is still considered the leader in this sector. Chevron had a 6% revenue decline compared to Exxon, which posted a sales decline of 12% -- I think this supports the idea that perhaps Chevron shares are undervalued. From the standpoint of operating margin, Chevron should command a higher P/E, all things being equal. On a segmental basis, the Chevron's upstream business was far and away the bread winner this quarter despite upstream profits falling 4% year over year to $1.13 billion due to a combination of lower crude oil prices and higher operating costs.