Chevron Just Hit a Record High. Is the Stock Still a Buy?

On Oct. 14, Chevron (NYSE: CVX) touched an all-time high closing price of $222.04. As I write this, it's trading at just about a dollar below that. The stock has had a banner 2026, climbing 45% and massively outperforming the broader market.

So, the question for investors right now is: Is that impressive price gain just due to elevated oil prices, which are bound to come back down eventually? Or is the stock a buy for the long term?

Well, it's certainly true that oil prices are elevated. The current price for a barrel of Brent crude, the international benchmark, is just under $106. That's 46% higher than before the war in the Persian Gulf began. When oil prices rise, revenue and profits for oil majors rise in tandem, and share prices follow.

But Chevron has more going for it than just war-related increases in crude prices. It is extremely well-positioned to benefit from President Donald Trump's deal with Venezuela that gives the U.S. control of more than 65 billion barrels of that country's proven reserves. Chevron appears to be intricately involved with the plan, as it was the only American oil major to retain operations in Venezuela after the Bolivarian revolution of 1999.

Image source: Getty Images.

The company is also expanding its presence in the Mediterranean Sea, with new agreements to begin seismic research in waters off Greece later this year. The expansion into Greek waters bolsters Chevron's strategy to expand in the Eastern Mediterranean and build on operations in Israel, Egypt, and Cyprus. The region is a significant and growing source of natural gas.

A global refining shortage will benefit Chevron

There's also the global shortage of refining capacity, which is expected to outlast the conflict with Iran. The shortage is a big positive for Chevron, which has the capacity to refine the heavy, sour crude produced by Venezuela. Chevron CEO Mike Wirth said in January that the company can process an additional 100,000 barrels per day of Venezuelan crude at its Pascagoula, Mississippi refinery.

Chevron reported net income of $12.1 billion for the second quarter, nearly 400% higher than the year-ago quarter, on record U.S. production and 20% growth in global production. This was its highest quarterly profit in the last six years. It beat Wall Street's earnings estimates by $0.50 a share, at $6.06.

Chevron will report its third-quarter results on Oct. 30, and I expect similarly positive figures. As a result of all this recent good news, and more expected, I believe this stock is a buy, even after hitting a record high.

Wall Street agrees. Of the 25 Wall Street analysts who cover the stock (as recorded by Yahoo! Finance), 20 rate it a "Buy" or "Strong Buy."

Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.