Trading Strategies: Chevron's Nice Little Run

TheStreet's Martin Baccardax breaks down Real Money's Stock of the Day, Chevron, and its run in the market.
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Chevron (CVX) - Get Report is Real Money's Stock of the Day

For this week's episode of Trading Strategies, TheStreet's Martin Baccardax broke down Chevron's earnings and the oil sector. 

Baccardax said, " It's had a nice little 10 day run at about 7 to 8 percent to the upside. It's still relatively expensive to its peers at about 14 times forward, and I think that's an interesting point and it's one that Jim Cramer's made on multiple occasions over the past couple of weeks in the way that oil was probably going to dictate financial market performance going forward."

"The recovery in Chevron's stock has coincided with a recovery in U.S. crude oil prices, which have risen more than 13% from their bottom of the barrel price of $42.53 on Christmas Eve," wrote Real Money's Kevin Curran in an article Friday morning. 

"The recovery in global oil prices is aided by firmer production cuts from OPEC. Analysts are now anticipating a 1.2 million barrel per day production cut from the Saudi-led oil cartel. The cuts were supplemented by reports from the American Petroleum Institute Thursday that showed U.S. crude stockpiles fell by 4.5 million barrels in the week ending December 21, assuaging anxiety over U.S. manufacturing numbers," continued Curran.

"Chevron remains a fan favorite among the integrateds for its medium term growth pipeline, strong balance sheet, modest buyback and business model being built around a $50/bbl environment," said RBC analyst Biraj Borkhtaria.

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