Reese says that three of his Guru Strategies — those he bases on the writings of Benjamin Graham, James O’Shaughnessy, and Peter Lynch — recently issued a Trade Alert for CVX. Historically, when this particular alert has been issued, a stock has gone on to gain an average of 15.7% over three months.
Reese notes that Chevron and other big oil firms have a lot of concerns hovering over them, including rising costs, a sluggish global economy, and regulatory issues. “But while all of those are legitimate challenges going forward, the bullish story with Chevron has to do with fundamentals and valuation,” he says. Click here to read more about the specifics of why Reese’s strategies are keen on the stock.