Hess (NYSE:HES) Stock, Quote.Headers.trade-ideas

Hess

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.

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The year 2024 saw the U.S. stock market make new records, with major indices breaching key milestones. While many stocks witnessed a stellar rally this year, analysts still expect some blue-chip equities to rise further as they forecast a better return potential.



Dow’s Performance In 2024

Top 7 Blue-Chip Stocks With The Best Return Potential Going Into 2025



There are several reasons to believe that 2025 may be a gusher for long-suffering investors in the oil sector. Despite the United States pumping more oil than ever before, energy stocks, in general, have underperformed

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Hess Corp

HERMES INTL SA by Hermes International SA

Hermes International SA

HERMES INTL SA UNSP/ADR by Hermes International SA

HEALTH SCIENCES GROUP INC by Health Sciences Group, Inc.

Health Sciences Group Inc

Hess Midstream LP Class A Representing Limited Partner Interests

Hess Midstream LP

HOME ENERGY SAVINGS CORP by Home Energy Savings Corp.

The year 2024 saw the U.S. stock market make new records, with major indices breaching key milestones. While many stocks witnessed a stellar rally this year, analysts still expect some blue-chip equities to rise further as they forecast a better return potential.
Dow&#8217;s Performance In 2024
The Dow Jones Industrial Average index hit a record eight 1,000-point milestones this year. It started the year around the 37,000 level and breached the 45,000 level at the beginning of December. It took only seven trading days for the index to go from 44,000 to 45,000, the second fastest 1,000-point milestone ever.
Following that the index also saw one of its longest 10-day losing streak, the first ever since 1974. These 10 days of underperformance stems from a confluence of factors. 
The Dow doesn&#8217;t include all &#8220;Magnificent 7&#8221; stocks like Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>). The recent inclusion of Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in the Dow has also pulled the index down because of the stock&#8217;s underperformance.
Dow&#8217;s constituent UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) has experienced a substantial decline this month following the tragedy with its CEO&#8217;s shooting. Moreover, in essence, the Dow&#8217;s historical advantage of its price-weighted indexing has become a significant disadvantage in today&#8217;s market. This is because, unlike market capitalization-weighted indices, higher-priced stocks have more weight in the calculation of a price-weighted index.
<h4 class="wp-block-heading">Dow Jones Stocks With The Best And Worst Return Potential</h4>
Analysts still expect that a group of stocks led by Caterpillar Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), UnitedHealth and Sherwin-Williams Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHW#NYSE">SHW</a>) within the Dow will rise even more, according to estimates compiled by <a href="https://www.benzinga.com">Benzinga</a>. Others on the list are the Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and Merck &amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>).
To be sure, analysts keep updating their forecasts based on company performance and may change their estimates as the new earnings season begins.
Selection Criteria:
<ul>
<li>The thirty blue-chip stocks in Down Jones.</li>
</ul>
<ul>
<li>The highest and lowest return potential is based on the average 12-month target prices from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Companies</td>
<td>M-Cap</td>
<td>Highest PT ($/Share)</td>
<td>Lowest PT ($/Share)</td>
<td>Consensus PT ($/Share)</td>
<td>Upside/Downside Potential</td>
</tr>
<tr>
<td>Caterpillar Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>)</td>
<td>176.73B</td>
<td>515</td>
<td>174</td>
<td>331.35</td>
<td>31.68%</td>
</tr>
<tr>
<td>UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)</td>
<td>460.26B</td>
<td>675</td>
<td>460</td>
<td>608.16</td>
<td>28.95%</td>
</tr>
<tr>
<td>Sherwin-Williams Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHW#NYSE">SHW</a>)</td>
<td>86.71B</td>
<td>450</td>
<td>249</td>
<td>371.19</td>
<td>24.08%</td>
</tr>
<tr>
<td>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>2,365.04B</td>
<td>290</td>
<td>197</td>
<td>247.05</td>
<td>23.82%</td>
</tr>
<tr>
<td>Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>)</td>
<td>347.83B</td>
<td>215</td>
<td>40</td>
<td>168</td>
<td>22.41%</td>
</tr>
<tr>
<td>Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>256.71B</td>
<td>212</td>
<td>160</td>
<td>179.36</td>
<td>21.42%</td>
</tr>
<tr>
<td>Merck &amp; Co Inc (NYSE: MRK</td>
<td>248.03B</td>
<td>155</td>
<td>104</td>
<td>126.24</td>
<td>20.76%</td>
</tr>
<tr>
<td>Salesforce Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>)</td>
<td>328.87B</td>
<td>450</td>
<td>236</td>
<td>378.52</td>
<td>20.60%</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>3,246.07B</td>
<td>600</td>
<td>465</td>
<td>508</td>
<td>18.21%</td>
</tr>
<tr>
<td>Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>)</td>
<td>622.63B</td>
<td>375</td>
<td>252</td>
<td>318.42</td>
<td>17.69%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Benzinga.com (Data as of Dec. 22, 2024)</figcaption></figure>
See Also: <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">Is The 26-Month Bull Market Over? Here Is What Carson Research&#8217;s 50-Year Old Study Tells Us</a>
<h3 class="wp-block-heading">Caterpillar Inc</h3>
<ul>
<li>Caterpillar Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) has the highest return potential of 31.68% among the Dow Jones constituents.</li>
</ul>
<ul>
<li>The 28 analysts tracking the company have a consensus price target of $331.35 per share, according to <a href="https://www.benzinga.com/quote/CAT/analyst-ratings">Benzinga</a>. </li>
</ul>
<ul>
<li>Truist Securities&#8217; Jamie Cook raised the price target from $454 to $471 per share on Dec. 19, 2024 as he expects significant investments in infrastructure, likely driven by government initiatives and private sector projects to fuel demand for Caterpillar&#8217;s equipment.</li>
</ul>
<ul>
<li>Citigroup analyst Kyle Menges maintained a &#8216;buy&#8217; rating on the company and raised the price target from $435 to $460 apiece on Dec. 9, 2024.</li>
</ul>
<ul>
<li>On Dec. 9, JPMorgan analyst Tami Zakaria also reaffirmed her bullish stance on Caterpillar, maintaining a &#8216;buy&#8217; rating on the stock. Concurrently, she raised the firm&#8217;s price target for Caterpillar from $500 to $515 per share.</li>
</ul>
<h3 class="wp-block-heading">UnitedHealth Group</h3>
<ul>
<li>UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) has the second highest return potential of 28.95% among the Dow Jones constituents.</li>
</ul>
<ul>
<li>The 26 analysts tracking the company have a consensus price target of $331.35 per share, according to <a href="https://www.benzinga.com/quote/UNH/analyst-ratings">Benzinga</a>.</li>
</ul>
<ul>
<li>Oppenheimer raised its price target to $640 from $610 apiece on Dec.6, 2024. The primary reason for the price target increase is that the Oppenheimer analyst is updating their financial model. This update appears to be based solely on the publicly available information disclosed by UnitedHealth in their 8-K filing.</li>
</ul>
<ul>
<li>Stephens &amp; Co raised its target price to $675 from $605 per share on Dec. 5, 2024, after conducting a detailed review of the 2025 guidance metrics that UnitedHealth had shared before the fatal shooting of CEO Brian Thompson that led to the cancellation of their investor conference.</li>
</ul>
<ul>
<li>Deutsche Bank also increased its target from $595 to $625 apiece as it believes investor positioning into the event is mostly neutral to positive, with almost no one expecting a negative revision versus the third quarter outlook.</li>
</ul>
<h3 class="wp-block-heading">Sherwin-Williams Company</h3>
<ul>
<li>Sherwin-Williams Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHW#NYSE">SHW</a>) has a return potential of 24.08% going into 2025.</li>
</ul>
<ul>
<li>A consensus price target of $371.19 per share was maintained by 25 analysts that track the company, as per <a href="https://www.benzinga.com/quote/SHW/analyst-ratings">Benzinga</a>. </li>
</ul>
<ul>
<li>Greg Melich from Evercore ISI raised the price target of the Ohio-based paints, coatings and related products manufacturer to $420 from $400 per share on Nov. 7, 2024.</li>
</ul>
<ul>
<li>RBC Capital&#8217;s Arun Viswanathan lowered his target on the company from $455 to $446 per share on Oct. 24, 2024. While acknowledging that third-quarter results might not have met investor expectations, Viswanathan emphasized the company&#8217;s potential for market share gains and the positive impact of its upcoming price increase scheduled for January 2025.</li>
</ul>
<ul>
<li>Citigroup adjusted its price target from $430 to $420 apiece on Oct. 24 as it anticipates choppy demand in the first half of 2025, which could hinder the rapid pass-through of interest rate cuts.</li>
</ul>
See Also: <a href="https://www.benzinga.com/markets/equities/24/11/42383725/trump-administrations-deregulation-efforts-to-lift-energy-oil-and-gas-sectors-ai-frenzy-to-aid-faang-stocks-and-nvidia-says-fintech-insider">Trump&#8217;s Deregulation Efforts To Benefit Energy, Oil And Gas Sectors, While AI Frenzy Will Boost FAANG Stocks And Nvidia, Says Fintech Insider</a>
<h3 class="wp-block-heading">Amazon.com Inc</h3>
<ul>
<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) has a return potential of 23.82% going into 2025.</li>
</ul>
<ul>
<li>A consensus price target of $247.05 per share was maintained by 39 analysts that track the company, as per <a href="https://www.benzinga.com/quote/AMZN/analyst-ratings">Benzinga</a>. </li>
</ul>
<ul>
<li>Tigress Financial&#8217;s Ivan Feinseth umped is price target from $245 to $290 apiece on Dec.20, 2024 as it believes Amazon is well-positioned for continued success, driven by robust retail trends, effective utilization of generative AI and its fulfillment network, and the strategic integration of AI across its entire business.</li>
</ul>
<ul>
<li>The expectations of strong long-term growth driven by operational efficiency and sustained momentum across its business segments led Bernstein to raise its target price from $235 to $265 per share on Dec. 18, 2024.</li>
</ul>
<ul>
<li>According to JPMorgan analyst Douglas Anmuth, Amazon is a best idea for 2025, and confidence in AWS growth in the months to come is a major reason for that. He raised its target price from $250 to $280 apiece on Dec. 18, 2024.</li>
</ul>
<h3 class="wp-block-heading">Johnson &amp; Johnson</h3>
<ul>
<li>Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) has the fifth highest return potential in Dow of 22.41% going into 2025.</li>
</ul>
<ul>
<li>The 21 analysts tracking the company have a consensus price target of $168 apiece, according to <a href="https://www.benzinga.com/quote/JNJ/analyst-ratings">Benzinga</a>. </li>
</ul>
<ul>
<li>Citigroup&#8217;s Joanne Wuensch lowered Johnson &amp; Johnson&#8217;s price target from $185 to $175 per share while maintaining a &#8216;buy&#8217; rating on Dec. 11, 2024.</li>
</ul>
<ul>
<li>BofA Securities reinstated coverage of Johnson &amp; Johnson with a &#8216;neutral&#8217; rating and a $166 price target on Dec. 10, 2024. BofA notes that J&amp;J&#8217;s current valuation premium to peers may limit upside potential. However, the analyst acknowledges a &#8220;fairly interesting&#8221; pipeline and anticipates that resolving the talc litigation in 2025 would be beneficial. This analysis was part of BofA&#8217;s broader coverage initiation of 11 large-cap U.S. pharmaceutical and biotechnology companies.</li>
</ul>
<ul>
<li>Wolfe Research analyst Alexandria Hammond commenced coverage of Johnson &amp; Johnson with an &#8216;outperform&#8217; recommendation and established a price target of $190 per share on Nov. 15, 2024</li>
</ul>
<h3 class="wp-block-heading">Chevron Corporation</h3>
<ul>
<li>Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) has a return potential of 21.42% going into 2025.</li>
</ul>
<ul>
<li>The 24 analysts tracking the company have a consensus price target of $179.36 apiece, according to <a href="https://www.benzinga.com/quote/CVX/analyst-ratings">Benzinga</a>.</li>
</ul>
<ul>
<li>Piper Sandler analyst Ryan Todd reduced his price target on the company from $184 to $173 per share on Dec. 19, 2024, while maintaining a &#8216;buy&#8217; rating. Piper Sandler suggests the valuation gap between Exxon Mobil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron implies a probability of over 65% of the Hess Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) deal failing out. This scenario presents a potential 15%-25% upside, while a successful deal offers a 5%-10% downside ahead of the upcoming arbitration.</li>
</ul>
<ul>
<li>Despite this deal uncertainty, Piper expects Chevron to deliver strong portfolio performance in 2025, driven by project starts and controlled capital expenditures. This is projected to result in a significant free cash flow increase of $6-$7 billion.</li>
</ul>
<ul>
<li>Wells Fargo analyst Roger Read raised his target price from $171 to $188 apiece on Dec. 9, 2024</li>
</ul>
<ul>
<li>Truist Securities raised its price target on Chevron to $160 from $155 while maintaining a &#8216;hold&#8217; rating, on Dec. 6, 2024. The analyst highlights Chevron&#8217;s significant inventory, including ample royalties, and expects improved capital efficiency to drive a cash flow inflection in the coming year.</li>
</ul>
<h3 class="wp-block-heading">Merck &amp; Co Inc</h3>
<ul>
<li>Merck &amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) has the seventh highest return potential in Dow of 20.76% going into 2025.</li>
</ul>
<ul>
<li>The 27 analysts tracking the company have a consensus price target of $126.24 apiece, according to <a href="https://www.benzinga.com/quote/MRK/analyst-ratings">Benzinga</a>.</li>
</ul>
<ul>
<li>BMO Capital Markets downgraded Merck to &#8216;market perform&#8217; from &#8216;outperform&#8217; lowering the price target from $136 to $105 apiece, on Dec. 20, 2024. The downgrade reflects concerns about the company&#8217;s Gardasil franchise in China and the potential revenue gap as Keytruda faces increased competition from biosimilars and generic drugs.</li>
</ul>
<ul>
<li>Tim Anderson from BofA Securities maintains his bullish stance on Merck with a &#8216;buy&#8217; rating, while adjusting the price target downward to $121 from $127 per share, on Dec. 10, 2024.</li>
</ul>
<ul>
<li>Truist analyst Robyn Karnauskas reaffirms a &#8216;buy&#8217; rating for Merck on Nov. 7, 2024, but lowers the price target to $130 from $132 apiece.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/12/42642834/market-breadth-turns-positive-after-a-rare-14-day-negative-streak-history-suggests-gains-ahead">Market Breadth Rebounds As Risk Appetite Makes A Comeback: This Analyst Predicts Gains Ahead After S&amp;P 500&#8217;s Record Negative Streak</a></li>
</ul>
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Shares of oil and gas companies are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Loop Capital raised the price target for Maplebear Inc.  (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CART#NASDAQ">CART</a>) from $49 to $56. Loop Capital analyst Rob Sanderson maintained a Buy rating. Maplebear shares closed at $44.19 on Friday. <a href="https://www.benzinga.com/quote/CART/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Barclays boosted the price target for Intercontinental Exchange, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>) from $173 to $187. Barclays analyst Benjamin Budish maintained an Overweight rating. Intercontinental Exchange shares closed at $155.93 on Friday. <a href="https://www.benzinga.com/quote/ICE/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wells Fargo boosted Hess Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) price target from $151 to $193. Wells Fargo analyst Roger Read upgraded the stock from Equal-Weight to Overweight. Hess shares settled at $141.53 on Friday. <a href="https://www.benzinga.com/quote/HES/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley increased The Bank of New York Mellon Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) price target from $82 to $94. Morgan Stanley analyst Betsy Graseck upgraded the stock from Equal-Weight to Overweight. Bank of New York Mellon shares closed at $80.51 on Friday. <a href="https://www.benzinga.com/quote/BK/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Citigroup slashed BioAge Labs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIOA#NASDAQ">BIOA</a>) price target from $45 to $7. Citigroup analyst Samantha Semenkow downgraded the stock from Buy to Neutral. BioAge Labs shares closed at $20.09 on Friday.  <a href="https://www.benzinga.com/quote/BIOA/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Telsey Advisory Group boosted RH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RH#NYSE">RH</a>) price target from $290 to $330. Telsey Advisory Group analyst Cristina Fernandez maintained a Market Perform rating on the stock. RH shares closed at $376.07 on Friday. See how other analysts view this stock.</li>
<li>Baird raised the price target for VeriSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSN#NASDAQ">VRSN</a>) from $200 to $250. Baird analyst Robert Oliver upgraded the stock from Neutral to Outperform. VeriSign shares settled at $191.14 on Friday. <a href="https://www.benzinga.com/quote/VRSN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham boosted Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>) price target from $300 to $330. Needham analyst Chris Pierce maintained a Buy rating. Carvana shares closed at $251.21 on Friday. <a href="https://www.benzinga.com/quote/CVNA/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Ascendiant Capital cut the price target for Lucid Diagnostics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUCD#NASDAQ">LUCD</a>) from $7.25 to $7. Ascendiant Capital analyst Edward Woo maintained a Buy rating. Lucid Diagnostics shares closed at $0.8401 on Friday. <a href="https://www.benzinga.com/quote/LUCD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Deutsche Bank raised Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) price target from $295 to $370. Deutsche Bank analyst Edison Yu maintained a Buy rating. Tesla shares closed at $389.22 on Friday. <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying TSLA stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="467" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09100302/image-65-1024x467.png" alt="" class="wp-image-683364" style="width:639px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09100302/image-65-1024x467.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09100302/image-65-300x137.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09100302/image-65-768x350.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/09100302/image-65.png 1220w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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Price Target

Analyst Ratings

BIOA

CART

CVNA

LUCD

VRSN

Tesla To $370? Here Are 10 Top Analyst Forecasts For Monday

Wells Fargo analyst Roger Read upgrades Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) from Equal-Weight to Overweight and raises the price target from $151 to $193.

Upgrades

Wells Fargo Upgrades Hess to Overweight, Raises Price Target to $193

Citigroup analyst Scott Gruber maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Neutral and raises the price target from $145 to $163.

Citigroup Maintains Neutral on Hess, Raises Price Target to $163

FANG

PARR

VNOM

Shares of oil and gas companies are lower ahead of OPEC's supply decision on Thursday. The commodity may be falling due to ongoing conflict in the Middle East.

Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $164.33, a high estimate of $194.00, and a low estimate of $145.00. A 3.83% drop is evident in the current average compared to the previous average price target of $170.88. 
<img src="https://www.benzinga.com/files/images/story/2024/1733245233_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The standing of Hess among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$185.00</td>
<td>$173.00</td>
</tr>
<tr>
<td>Biju Perincheril</td>
<td>Susquehanna</td>
<td>Raises</td>
<td>Neutral</td>
<td>$154.00</td>
<td>$149.00</td>
</tr>
<tr>
<td>Paul Cheng</td>
<td>Scotiabank</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$167.00</td>
<td>$157.00</td>
</tr>
<tr>
<td>Phillip Jungwirth</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$160.00</td>
<td>$155.00</td>
</tr>
<tr>
<td>Doug Leggate</td>
<td>Wolfe Research</td>
<td>Announces</td>
<td>Outperform</td>
<td>$150.00</td>
<td>-</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$151.00</td>
<td>$171.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$173.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$194.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Scott Gruber</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$145.00</td>
<td>$160.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Hess. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Hess compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Hess's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Hess's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/HES/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Hess analyst ratings.</a>
<h2>All You Need to Know About Hess</h2>
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.
<h3>Hess's Economic Impact: An Analysis</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Hess's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 13.96%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Hess's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 15.61%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Hess's ROE excels beyond industry benchmarks, reaching 4.67%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Hess's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.91%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.88, caution is advised due to increased financial risk.
<h2>The Basics of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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Beyond The Numbers: 9 Analysts Discuss Hess Stock

UBS analyst Josh Silverstein maintains Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) with a Buy and raises the price target from $173 to $185.

UBS Maintains Buy on Hess, Raises Price Target to $185

<a href="https://www.wolferesearch.com/eventsandconferences/" title="https://www.wolferesearch.com/eventsandconferences/">https://www.wolferesearch.com/eventsandconferences/</a>

Hess CEO Urges Trump Administration To Fill Up The Strategic Petroleum Reserve At A More Accelerated Rate

<a href="https://www.wolferesearch.com/eventsandconferences/">https://www.wolferesearch.com/eventsandconferences/</a>&nbsp;

Hess CEO On Nuclear Energy Use By Megatech, "That's A Pipedream", Says NatGas Will Be The Fuel Of Choice

Hess CEO Says Between President-Elect Trump And China, Demand For Oil Will Be Stronger Next Year

SHEL

Shares of energy and oil stocks are trading higher amid a rise in the price of oil, which gained on Russia-Ukraine tensions and a Norway oilfield shutdown.

Whales with a lot of money to spend have taken a noticeably bearish stance on Hess.
Looking at options history for Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) we detected 10 trades.
If we consider the specifics of each trade, it is accurate to state that 30% of the investors opened trades with bullish expectations and 50% with bearish.
From the overall spotted trades, 3 are puts, for a total amount of $113,290 and 7, calls, for a total amount of $232,048.
<h3>Predicted Price Range</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $85.0 to $160.0 for Hess over the recent three months. 
<h3>Analyzing Volume &amp; Open Interest</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Hess's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Hess's whale trades within a strike price range from $85.0 to $160.0 in the last 30 days. 
<h3>Hess Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1731960023_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th align="right">Open Interest</th>
<th align="right">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>HES</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$12.3</td>
<td>$11.1</td>
<td>$11.26</td>
<td>$140.00</td>
<td>$45.0K</td>
<td align="right">57</td>
<td align="right">107</td>
</tr>
<tr>
<td>HES</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$21.2</td>
<td>$19.9</td>
<td>$21.2</td>
<td>$140.00</td>
<td>$42.0K</td>
<td align="right">108</td>
<td align="right">32</td>
</tr>
<tr>
<td>HES</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>02/21/25</td>
<td>$4.1</td>
<td>$3.6</td>
<td>$3.6</td>
<td>$155.00</td>
<td>$39.6K</td>
<td align="right">598</td>
<td align="right">110</td>
</tr>
<tr>
<td>HES</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$16.0</td>
<td>$13.5</td>
<td>$14.0</td>
<td>$145.00</td>
<td>$35.0K</td>
<td align="right">14</td>
<td align="right">70</td>
</tr>
<tr>
<td>HES</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$13.3</td>
<td>$12.6</td>
<td>$13.3</td>
<td>$145.00</td>
<td>$33.2K</td>
<td align="right">14</td>
<td align="right">25</td>
</tr>
</tbody>
</table>

<h3>About Hess</h3>
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.
Having examined the options trading patterns of Hess, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Present Market Standing of Hess</h3>
<ul>
<li>With a trading volume of 551,925, the price of HES is up by 1.02%, reaching $147.12.</li>
<li>Current RSI values indicate that the stock is is currently neutral between overbought and oversold.</li>
<li>Next earnings report is scheduled for 72 days from now.</li>
</ul>
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Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
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Options

Hess's Options: A Look at What the Big Money is Thinking

Disclosed on November 13, Geurt G Schoonman, Senior Vice President at Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>), executed a substantial insider sell as per the latest SEC filing.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0000004447/000095017024125835//Archives/edgar/data/4447/000095017024125835/0000950170-24-125835-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday showed that Schoonman sold 6,000 shares of Hess. The total transaction amounted to $851,460. 
Hess's shares are actively trading at $140.79, experiencing a down of 0.0% during Wednesday's morning session.
<h3>Get to Know Hess Better</h3>
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.
<h3>Breaking Down Hess's Financial Performance</h3>
Revenue Growth: Over the 3 months period, Hess showcased positive performance, achieving a revenue growth rate of 13.96% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Evaluating Earnings Performance:
<ul>
<li>
Gross Margin: The company excels with a remarkable gross margin of 78.09%, indicating superior cost efficiency and profitability compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.62, Hess showcases strong earnings per share.
</li>
</ul>
Debt Management: Hess's debt-to-equity ratio stands notably higher than the industry average, reaching 0.88. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Valuation Analysis:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current P/E ratio of 16.41 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.41 as compared to the industry average, the stock might be considered overvalued based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 7.27 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
</li>
</ul>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
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<h3>The Relevance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>The Insider's Guide to Important Transaction Codes</h3>
Navigating through the landscape of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000004447">Check Out The Full List Of Hess's Insider Trades.</a>
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Geurt G Schoonman Executes Sell Order: Offloads $851K In Hess Stock

John B Hess, Chief Executive Officer at Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>), executed a substantial insider sell on November 7, according to an SEC filing.
What Happened: Hess opted to sell 543,679 shares of Hess, according to a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000004447/000095017024123518//Archives/edgar/data/4447/000095017024123518/0000950170-24-123518-index.htm">U.S. Securities and Exchange Commission</a> on Thursday. The transaction's total worth stands at $77,835,860.
Tracking the Friday's morning session, Hess shares are trading at $142.75, showing a down of 0.0%.
<h3>Get to Know Hess Better</h3>
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.
<h3>Key Indicators: Hess's Financial Health</h3>
Revenue Growth: Hess's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 13.96%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Profitability Metrics: Unlocking Value
<ul>
<li>
Gross Margin: The company sets a benchmark with a high gross margin of 78.09%, reflecting superior cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Hess's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.62.
</li>
</ul>
Debt Management: Hess's debt-to-equity ratio surpasses industry norms, standing at 0.88. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyzing Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The P/E ratio of 16.64 is lower than the industry average, implying a discounted valuation for Hess's stock.
</li>
<li>
Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.46, Hess's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Boasting an EV/EBITDA ratio of 7.36, Hess demonstrates a robust market valuation, outperforming industry benchmarks.
</li>
</ul>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
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<h3>Exploring the Significance of Insider Trading</h3>
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Understanding Crucial Transaction Codes</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000004447">Check Out The Full List Of Hess's Insider Trades.</a>
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

John B Hess Takes Money Off The Table, Sells $77.84M In Hess Stock

KLXE

NCSM

NINE

PUMP

RCON

Shares of oil and gas companies are trading higher After Donald Trump wins the 2024 presidential election.

Updated 2024 Full Year Guidance:
<ul>
<li>E&amp;P capital and exploratory expenditures are expected to be approximately $4.9 billion, up from previous guidance of $4.2 billion, reflecting the decision to accelerate the purchase of the Liza Destiny and Prosperity floating production, storage and offloading vessels (FPSOs) to the fourth quarter of 2024 instead of in 2025</li>
</ul>

Guidance

Hess Raises FY24 E&P Capex Outlook To $4.9B from $4.2B Prior

Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) reported quarterly earnings of $2.14 per share which beat the analyst consensus estimate of $1.77 by 20.9 percent. This is a 30.49 percent increase over earnings of $1.64 per share from the same period last year. The company reported quarterly sales of $3.197 billion which beat the analyst consensus estimate of $2.822 billion by 13.31 percent. This is a 12.69 percent increase over sales of $2.837 billion the same period last year.

Earnings

Earnings Beats

Hess Q3 2024 Adj. EPS $2.14 Beats $1.77 Estimate, Sales $3.197B Beat $2.822B Estimate

DWSN

Shares of oil and oil-related companies are trading lower after Israel reportedly did not damage Iran's oil sites amid strikes over the weekend.

Occidental Petroleum Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oxy#NYSE">OXY</a>) is down 13.4% in 2024 and over 20% in the last 12 months. However, that hasn&#39;t seemed to bother Warren Buffett one bit. His Berkshire Hathaway Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NYSE">BRK-B</a>) portfolio has continued to buy OXY stock. As of this writing, Berkshire owns approximately 29% of Occidental, with regulatory approval to buy up to 50%.
Conversely, in the last quarter, Berkshire Hathaway sold 4.3 million shares of Chevron Corp. (NYSE: CVX). However, since the fourth quarter of 2022, Buffett has sold CVX stock on seven occasions, totaling 73.08 shares. &nbsp;
It&#39;s not&nbsp;surprising that Buffett likes&nbsp;<a href="https://www.marketbeat.com/stocks/sectors/oils-energy/" rel="noopener" target="_blank">energy stocks,</a> including oil stocks. According to the International Energy Agency (IEA), fossil fuel demand is expected to peak in 2030. That&#39;s a nod to the growth in renewable energy solutions, which&nbsp;are starting to grow at scale. &nbsp;
That would seem bearish for oil, but if you knew that notebook paper would be extinct in 10 years, you&#39;d probably be buying stock in any company that sold pens. That&#39;s the opportunity in oil. Plus, the reality is that even if oil demand peaks in 2030 (a big if), it won&#39;t be like flipping off a light switch. &nbsp;
Even if oil stock prices are cyclical, many of these companies pay a solid, growing dividend and perform regular share buybacks to increase shareholder value. Those are two things that align with Buffett&#39;s investment philosophy. &nbsp;
<h3>Why Buffett Likes OXY Stock</h3>
Warren Buffett has made no secret of his admiration for Occidental&#39;s CEO, Vicki Hollum. In 2019, the company acquired Anadarko for $55 billion, which created a significant level of debt. However, it has cut that debt by more than 50%, and the expectation of higher oil prices will allow the company to continue that effort. &nbsp;
The price of oil is another reason why Buffett likes Occidental. The company generates the bulk of its revenue from its upstream drilling business. That means when oil prices rise, Occidental will benefit more than a company like Chevron. &nbsp;
However, a key reason Buffett prefers OXY stock is an investment he made in the company before becoming a shareholder. Specifically, Berkshire delivered $10 billion to help Occidental win a bidding war with Chevron for Andarko. At that time, Occidental rewarded Berkshire with $10 billion in preferred stock, which has an 8% annual yield. Berkshire also owns warrants to purchase up to 80 million shares of OXY common stock. &nbsp;
<h3>The Straw Man Fallacy: Liking Occidental Doesn&#39;t Mean Hating Chevron</h3>
You&#39;ve likely seen it happen: someone says, &quot;I like pancakes,&quot; and the response is, &quot;So you hate waffles.&quot;
That&#39;s an example of a straw man argument where the original statement (liking pancakes) is oversimplified or exaggerated to mean they must hate waffles as if that was the only choice. &nbsp;&nbsp;
Investors should be careful not to create a straw man argument for Occidental Petroleum and against Chevron. Warren Buffett does, in fact, not hate Chevron. He started buying CVX stock around the same time he started buying OXY stock. However, looking at his buying and selling activity suggests that the CVX price (not the valuation) may have become too rich for Buffett. Chevron has also been tied up in a legal battle regarding its merger with Hess Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hes#NYSE">HES</a>), which won&#39;t be finalized until 2025.&nbsp;
In fact, Berkshire Hathaway owns approximately 6% of CVX stock, and it remains the fifth largest holding of Berkshire-Hathaway, just ahead of, you guessed it, Occidental Petroleum.&nbsp;
<h3>OXY Vs. Chevron: Which Stock Fits Your Investment Strategy?</h3>
In the final analysis, it&#39;s clear that Warren Buffett is still a fan of both Occidental Petroleum and Chevron. The combined companies account for approximately 10% of Berkshire Hathaway&#39;s entire portfolio. &nbsp;If you put the combined amount of the two companies&#39; stocks that Berkshire owns, only Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) would carry more weight on a percentage basis. &nbsp;
However, at this time, for the reasons listed above, OXY is Buffett&#39;s preference. However, the right investment for you depends on your particular investment strategy. For example, if you&#39;re an income investor, it&#39;s important to note that Chevron pays a much more attractive dividend with a yield of 4.38%. And that dividend has been growing at an annualized annual rate of 5.38% over the last three years. That&#39;s nearly twice the rate of the current rate of inflation. &nbsp;
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/why-buffett-loves-occidental-stock-and-what-it-means-for-chevron/">Why Buffett Loves Occidental Stock And What It Means for Chevron</a>&quot; first appeared on MarketBeat.

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