Bank of America Favors Chevron Over Exxon Amid Hormuz Tensions

Bank of America (BofA) has maintained its 'Buy' rating on Chevron Corp. (CVX), citing its preference for the oil and gas company over Exxon Mobil due to its business mix.

The bank's analysis suggests that CVX is better positioned to benefit from a potential surge in crude prices if Middle East tensions persist, particularly with control of the Strait of Hormuz at stake.

BofA analyst noted that CVX has 'higher earnings torque' to shifts upward in prices in 2026 and 2027, making it an attractive entry point for investors.

CVX shares have gained around 15% year-to-date as the Iran war pushed crude prices higher, with 19 of the 24 analysts covering the stock having a 'Buy' or 'Strong Buy' rating, according to Koyfin data.