Chevron Defies Criticism with Strong Fundamentals

President Trump's criticism of Chevron in early August might have left some investors wondering if the energy stock is still a good buy. However, despite being targeted by both Trump and California Governor Gavin Newsom, who urged drivers to boycott Chevron stations over high prices, the company's fundamentals remain strong.

One reason for this is the recent deal between the US and Venezuela, which grants the country control over 65 billion barrels of oil. As a result, Chevron is close to securing an agreement granting it access to two more fields in Venezuela's Orinoco Belt, one of the most oil-dense regions in the world.

These developments could lead to a significant increase in production for Chevron, which has already notched record output in the US and worldwide production increased 20% year over year. Additionally, the company has $1.5 billion in savings from its Hess acquisition and a 20-year data center power deal with Microsoft.

While politicians' targets can come and go, price action confirms that Chevron is still a good buy, despite the criticism. The stock is up 5.64% since Trump's comments, indicating that market sentiment is stronger than political rhetoric.