So what's got Chevron running on the day, boosting its gains this week to almost 4%? Analysts at Cowen bumped their price target to $160 from $122, reiterating their outperform rating, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
He asked, "when was the last time we saw a huge price target increase for an oil company?"
Analyst Sam Margolin sees positive developments in Chevron's cash flow and believes the company's Permian business is accelerating. Chevron's cash flow and dividend should support his new price target, Margolin reasons.
This is the fourth consecutive day we've seen strong gains in the energy sector, Cramer noted. Should the rest of Thursday's session go well, it will have a lot of investors thinking the sector is entering breakout territory. That could be a very bullish factor, as this sector hasn't been able to truly breakout in a few years.
- Oil Prices Extend Gains as Forties Pipeline Repair Estimate Remains Unchanged
- Saudi Aramco Prepares for Biggest Ever IPO with Huge Budget Hike
- Oil Stocks Ready to Burst as Trump's Jerusalem Designation Stirs High Drama
If Chevron stock is able to hold onto its recent gains, Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, speculates that other investors and analysts could come out "of their foxholes" and get behind other energy names.
More of What's Trending on TheStreet:
- Our Holiday Gift to You! 14 of Jim Cramer's AAP Picks
- How Bitcoin $50,000 by the End of 2018 Could Happen
- The 25 Biggest Tech Stories of 2017
- 25 Great Holiday Beers For Your Winter Fridge
At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.