Chevron Corporation (CVX), headquartered in Houston, Texas, integrates energy and chemicals operations. With a market cap of $277.5 billion, the company produces and transports crude oil and natural gas, as well as refines, markets, and distributes fuels worldwide. 

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and CVX definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the integrated oil & gas industry. One of CVX's key assets is its robust production capabilities and significant reserves. Producing 3.1 million barrels of oil equivalent per day and boasting 11.1 billion barrels in reserves, the company holds a formidable position in the industry. Additionally, CVX's wide-ranging presence across North America to Australia helps maintain a reliable supply chain and reduce exposure to regional risks.

Despite its notable strength, CVX slipped 4.9% from its 52-week high of $168.96, achieved on Mar. 26. Over the past three months, CVX stock gained 16.5%, outperforming the SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 9.8% gains during the same time frame.

In the longer term, shares of CVX rose 10.9% on a YTD basis and climbed 10% over the past 52 weeks, outperforming XOP’s YTD marginal gains and 3.4% drop over the last year.

To confirm the bullish trend, CVX has been trading above its 50-day moving average since early June. The stock is trading above its 200-day moving average since early July, with slight fluctuations. 

Chevron's outperformance is driven by its strong production growth in the Permian Basin, where it's leveraging digital technologies and automation to optimize output while focusing on sustainability. With current volumes at 800,000 to 850,000 barrels of oil equivalent per day (boe/d), Chevron aims to exceed 1 million boe/d by 2027, solidifying the Permian as a key driver of its growth strategy.

On Aug. 1, CVX shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $1.77 beat Wall Street expectations of $1.70. The company’s revenue was $44.8 billion, missing Wall Street forecasts of $47.1 billion.

In the competitive arena of integrated oil & gas, Exxon Mobil Corporation (XOM) has lagged behind CVX, with a 6.3% uptick on a YTD basis and 1.9% losses over the past 52 weeks.

Wall Street analysts are reasonably bullish on CVX’s prospects. The stock has a consensus “Moderate Buy” rating from the 26 analysts covering it, and the mean price target of $168.88 suggests a potential upside of 5.2% from current price levels.