Just read this in an Esquire article, and I am curious what ya'll think about it. Thanks for all of your informative discussions, and for helping a young guy out.
"Chevron.
How can the second-biggest energy company in the U. S. have room to grow? For one thing, Chevron is sitting on an ocean of cash — enough to pay every penny of debt and still have about $6 billion left over. Furthermore, with a PE of 10 and a forward PE of only 8.8 (compared with Exxon's 11.6 and ConocoPhillips's 10.6), the stock is cheap for a company that's grown earnings nearly 9 percent a year over the last ten years. Compare that with the S&P as a whole, which has a PE of 15.6 but a growth rate of only 4.9. Throw in the fact that Chevron's dividend of 3 percent is almost twice that of the S&P and its debt-to-equity is five times lower (10 versus 49) and you're looking at a stock that is ridiculously affordable, even as it trades near its three-year high. Add to this picture Chevron's record as one of the safest operators and the company's great opportunities in relatively stable places like Thailand, Australia, Vietnam, and the UK, and it's hard not to love this stock."
Read more: esquire.com |
