Chevron: buy for cyclical growth

Article Excerpt

Dear client, The best way for conservative investors to profit from cyclical oil and natural gas prices is with well-established leaders like Chevron. That’s partly because its large international presence cuts its exposure to any one region. Chevron also offers investors a growth element. As a major producer, Chevron has the capital to invest and technical expertise to successfully develop increasingly complex new finds, such as oil sands, shale gas and deepwater fields. It takes years to complete these developments, but Chevron’s earnings are set to surge as it starts some big projects in the next few years. CHEVRON CORP. $110 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $220.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.chevron.com) is the second-largest integrated…