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Shares of oil giant Chevron Corp (NYSE:CVX) are up more than 14% over the past year and are trading at a new all-time high. That being said, there are three reasons why CVX can continue to rally.

CVX ChartCVX data by YCharts

Technical Break-out

As shown by the chart below, CVX has just recently broken out of a trading range between $90 and $110 per share. Prior to breaking out, CVX had spent a very long time consolidating within this trading range. Now, with CVX trading well above $110, the stock has clearly broken out of the range. This breakout should lead to higher prices.

CVX ChartCVX data by YCharts

Dividend

Despite trading at an all-time high, CVX still yields a healthy 3.18%. Considering the current interest rate environment, CVX's 3.18% dividend remains attractive for income investors. One reason that the yield has remained high despite the stock trading at an all-time high is the company's history of increasing the dividend. As shown by the chart below, CVX has continued to increase the dividend over time.

CVX Dividend ChartCVX Dividend data by YCharts

Valuation

As shown by the charts below, based on two different valuation metrics, PE ratio and price to book, CVX is not expensive on a historical basis. To the contrary, CVX looks to be cheap on a historical basis.

CVX PE Ratio ChartCVX PE Ratio data by YCharts

CVX Price / Book Value ChartCVX Price / Book Value data by YCharts

Conclusion

While shares of CVX have moved up by more than 14% over the past year and are trading at an all-time high, I believe the stock can continue to rally. The technical break-out, current dividend yield, and cheap valuation are all reasons why CVX can continue to rally.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 3 Reasons Why Chevron Can Continue To Rally