Chevron Takes Top Spot as Oil Stocks Surge in First Half of 2026
The oil market's volatility in the first half of 2026 has boosted shares of ExxonMobil, Chevron, and Occidental Petroleum. Among these three stocks, Occidental Petroleum delivered the most impressive year-to-date performance due to its sensitivity to crude oil prices.
ExxonMobil and Chevron have been neck-and-neck with similar strong gains in 2026. Despite their exceptional returns, none of these stocks appear overvalued. ExxonMobil's forward price-to-earnings ratio is 14.3, while Chevron's is 13.6. Occidental Petroleum looks cheap with a forward earnings multiple of 10.5.
Occidental Petroleum's low valuation and strong performance in the first half of 2026 might make it an attractive choice for investors. However, its heavy upstream focus makes it riskier than ExxonMobil or Chevron, which could be affected less by potential drops in oil prices.
Chevron is considered Wall Street's favorite among these three stocks due to its strong performance in recent years and attractive dividend yield of 3.7%. The company has delivered the highest growth in cash flow from operations among its peers and has generated the highest production compound annual growth rate.