Jim Cramer Says 'Pull The Trigger' On Chevron Stock

Jim Cramer, host of CNBC's "Mad Money Lightning Round," recommended buying shares of Chevron Corporation (NYSE:CVX), saying: "The one thing I would tell you is the last time oil was at these prices, Chevron was dramatically higher, but you do get a 3.8% yield and they have great cash flow. Mike Wirth [CEO of Chevron] is running it, and I'm gonna say, pull the trigger."

Cramer's Rationale

Cramer's recommendation was based on two key factors:

• Attractive dividend yield: Chevron's dividend yield stands at 3.8%, above the sector average.
• Strong cash flow: Despite cost pressures, Chevron maintains robust cash flow supporting dividends and investments.

Recent Company Performance

Chevron reported mixed first-quarter results on May 1, with earnings reflecting ongoing cost pressures and market headwinds across its operations. However, Cramer did not directly address these results in his recommendation.

Price Context

Cramer noted that Chevron's stock was significantly higher when oil prices were last at current levels, potentially indicating the stock is undervalued now.

What This Means for Investors

Cramer's recommendation reflects confidence in Chevron's ability to navigate operational challenges thanks to strong cash flow and an attractive dividend yield. However, investors should consider ongoing cost pressures and oil price volatility before making any decisions.