We recently published 11 Stocks on Jim Cramer’s Radar. Chevron Corporation (NYSE:CVX) is one of the stocks on Jim Cramer radar.
Oil giant Chevron Corporation (NYSE:CVX)’s shares witnessed considerable traction after the US action in Venezuela. On January 6th, Freedom Capital downgraded the shares to Sell from Hold as it commented that while oil prices were falling, the shares of oil companies were rising to create a dangerous trend. The financial firm added that Chevron Corporation (NYSE:CVX)’s shares, along with those of other companies, could struggle once their earnings indicate a cooler performance than what the equity performance was suggesting. Another recent coverage came from Mizuho, which reiterated an Outperform rating and a $206 share price target for Chevron Corporation (NYSE:CVX). The firm commented that it expected the oil company to miss its fiscal fourth quarter earnings estimate. Cramer also took a cautious tone for the firm as, like Freedom Capital, he linked share price performance with oil price performance:
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“Well look I think people want to immediately jump to the conclusion that perhaps that you can un-nationalize what’s been nationalized. You can just dust off the infrastructure. I remember, I remember when I used to work with Larry Culpa. And there was a sense, that when you opened a rack, which was doing two million, that it would go to five. Well, eight years later it went to four. So, those who are trading on this right now, they are people who have been wrong about a lot of things and they are going to be wrong about this. Now maybe not wrong today, but I do think that, people might buy nuclear on this too. I think we have to, the year of magical investing ended and now we’re in the year of stupid investing and I think we have to call out trades that are stupid. If you’re going to buy oil on this, I wanna know why, because the price of oil is going to go lower, not higher.”
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Disclosure: None. This article is originally published at Insider Monkey.
