Financial Pros Love Early Earnings Announcements

[View in browser]( [The Juice Logo] BROUGHT TO YOU BY: [Logo]( Editor’s Note It’s Friday. Time to give you a stock pick from our sister newsletter, The Spill, so you can think about it over the weekend and maybe make a move Monday morning. While The Juice helps you be better with money across the board, The Spill focuses on stocks financial pros are researching and judges how good of buys they are. If you’re already sold, you can sign up for The Spill – for free – here. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D586929?utm_medium=ic-nl&utm_source=111339 ) Proprietary Data Insights Financial Pros’ Top Integrated Oil & Gas Stock Searches in the Last Month Rank Name Searches #1 'Exxon Mobil Corp 225 #2 'Chevron Corp 192 #3 'Petroleo Brasileiro S.A. Petrobras 39 #4 'BP Plc 26 #5 'Ypf Sociedad Anonima 15 #ad [[FREE REPORT] Q1’s Top 10 Trending Stocks]( Brought to you by [Masterworks]( [Investors earn 325% annualized return here (really)]( [ Masterworks - Investors earn 325% annualized return here (really)]( While the ultra-rich have been banking off this under-the-radar asset for centuries, a group of everyday investors just used it to rake in a whopping 325% annualized gain. Sounds nuts? It definitely is. But it's also 100% true. The asset was a sculpture offered by the fractional art investment platform Masterworks. After just 36 days, investors were able to profit for a 15.4% net gain, a triple-digit return on an annualized basis. While it’s not common for Masterworks to get a profitable exit that fast, every one of Masterworks’ 12 exits has returned a profit to investors, totaling more than $30 million in payouts. Dear readers, you can use this exclusive link to skip the waitlist. [Skip the waitlist]( *See important Regulation A disclosures at [masterworks.com/cd](. Chevron (CVX) Announces Earnings Early Carvana (CVNA) shares exploded when they pre-announced earnings. So when Chevron (CVX) did the same thing on Sunday, financial pros turned their eyes toward the oil & gas giant. Despite stagnant energy prices, the company reported earnings of $3.08 per share, beating analyst estimates of $2.97, as Permian Basin production set a quarterly record. We’ve been a fan of the company for a while. And we’ll show you PRECISELY why. Chevron’s Business Integrated oil and gas companies like Chevron compete in at least two of the three oil and gas segments: - Upstream: Exploration and production. Profits tie closely to the price of oil and natural gas. Accounted for 75% of Chevron’s six-month earnings total. - Midstream: Transportation and distribution. Chevron does not operate in this segment. - Downstream: Refining and sales. Accounted for the other 25% of Chevron’s earnings. Despite being labeled an ‘integrated’ oil and gas company, Chevron is clearly more of an upstream exploration and production company. Chevron’s holds a fairly diverse asset portfolio, with a significant portion dedicated to shale and tight drilling. [Asset class] [Source: CVX Investor Day Presentation 2023]( We’ve been a big fan of Chevron’s commitment to returning capital to shareholders through dividends and stock buybacks. In the company’s latest investor day presentation, they stated any upside cash produced would be used for stock buybacks. [Downside potential] [Source: CVX Investor Day Presentation 2023]( Financials [Financials] Source: Stock Analysis Chevron’s revenues exploded in 2022, largely due to higher commodity prices. Given OPEC+ latest choice to curtail production, we expect energy prices to remain elevated. The gross margins don’t really tell the picture as the average cost of production per barrel dropped from 26.9% in 2019 to 10.9% in 2022. This helped operating cash flow nearly doubled since then while free cash flow (operating cash flow less Capex) more than doubled. Total debt for the company halved during that same time period while net debt plunged from $48.2 billion to $7.4 billion, all while paying roughly $10 billion in dividends every year and repurchasing roughly $19 billion in stock. Valuation [Valuation] Source: Stock Analysis Chevron is surprisingly expensive compared to its peers, especially international players like Petrobras (PBR) and British Petroleum (BP) on a P/E basis. While not shown, the price-to-cash flow of 25.7x is notably higher than its peers, with Exxon Mobil at 19.4x and all other below 10x. However, all of them are below 8x on a price-to-forward-cash-flow basis, with the three international stocks below 5x. Growth [Growth] Source: Seeking Alpha Revenue growth was pretty solid across the board, with YPF Sociedad Anónima (YPF) doing the best. However, all show sales growth slowing next year. Forward earnings and EBITDA are expected to continue pushing higher next year as well. Profitability [Profit] Source: Seeking Alpha We prefer to compare the businesses on EBITDA and net income margin. All the companies are fairly in line, while PBR sits as an outlier largely due to the uncertainty surrounding Brazil’s economy and politics. [It's time you learn about Alternative Investments!]( Real Estate.. Private Equity… Commodities.. They can help you make a fortune. But it’s hard to figure out which to invest in. Ready to learn how to take your investments to the next level? [Sign up for The Alt for FREE.]( Our Opinion 9/10 Chevron is one of the most shareholder friendly companies out there. They hold a diverse, stable asset base. The only knock is their excess leverage to upstream operations. Nonetheless, this is a great holding for any long-term portfolio. 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