Stephanie Link Buys More Chevron as Energy Stocks Show Strength

Energy Sector Investment Strategy

• 💡 Stephanie Link, CIO at Hightower, explains her increased exposure to the energy sector, specifically buying more Chevron.
• 🎯 She aims for more commodity exposure, viewing Chevron as a best-in-class company with strong fundamentals.

Chevron's Financial Strengths

• 💰 Chevron is trading at an attractive valuation of 11 times EBITDA, with only a 9% increase in the past year.
• 📈 The company boasts diversified assets and very strong free cash flow, projected to grow at a 10% CAGR through 2030.
• 🤝 Link also approves of Chevron's synergistic M&A activity.

Broader Energy Market Outlook

• ⚠️ The energy sector is seen as underowned, with potential upside if crude oil prices see any increase from their current $60 level.
• 🚀 ExxonMobil hit a record high, exemplifying a sector-wide phenomenon where energy stocks are catching up after being left out of previous bull markets.
• 📊 With 85% of XLE names above their 50-day moving average and 19% hitting 52-week highs, the sector shows broad strength, even with oil in the $50s.
• 📈 Energy stocks are highlighted as a contrarian call, with potential for significant gains if oil prices rise.
• 🌟 Other energy stocks like SLB, ExxonMobil, Halliburton, Schlumberger, and Baker Hughes are also mentioned positively.