And the energy giant could rise even more due to strong demand and its dividend appeal (currently 4.09%). But another likely reason is Big Money lifting the stock.
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Chevron has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CVX has made the last year.
The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
In the last year, the stock attracted 31 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
Outperformance is important for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Chevron has been growing sales nicely. Take a look:
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CVX has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CVX has a lot of qualities that are attracting Big Money. It’s made this list nine times going all the way back to 2000 (and three times this year), with its first appearance on 04/30/2001…and gaining 520.52% since. The blue bars below show the times that Chevron was a top pick:
Source: www.mapsignals.com
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CVX makes additional appearances in the years to come. Let’s tie this all together.
The Bottom Line
The Chevron rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds no positions in CVX at the time of publication.
Learn more about the MAPsignals process here.
Disclaimer
https://mapsignals.com/contact/
This article was originally posted on FX Empire
More From FXEMPIRE:
