Trade Tracker: Stephanie Link buys more Chevron
Speakers
Stephanie Link
— Chief Investment Strategist, Hightower
Summary
Stephanie Link tells CNBC's Halftime Report that she is adding to Chevron and remains bullish on energy, arguing the sector is underowned and improving even with crude in the 50s. She also says she owns and has been adding to SLB, and bought Exxon as the safest energy name. She highlights XLE breadth metrics and cites Hartnett's contrarian call on energy.
- Stephanie Link added to Chevron, citing valuation, free cash flow growth, diversified assets, and synergistic M&A.
- She wants more commodity and energy exposure, arguing the sector is still underowned.
- Link says she bought SLB in November and has been adding to it.
- She bought Exxon as an exemplar and safest way to play the energy space, not for maximum upside.
- Energy breadth is strong: 85% of XLE names above 50-day average and 19% at 52-week highs with crude in the 50s.
- She cites Hartnett's view that energy is a contrarian call and that commodity charts could strengthen.
- Crude oil was noted around $60, the highest since mid-November.
Ideas
Best-in-class energy exposure with upside
Link is adding to Chevron because she wants more commodity exposure and sees Chevron as best-in-class: it trades around 11x EBITDA, has diversified assets, strong free cash flow with FCF expected to grow about 10% through 2030, exposure to a potential Venezuela uptick, and synergistic M&A. The stock is only up 9% over the past year, and she still thinks energy is underowned.
Energy underowned with improving technicals
Link wants more energy exposure and argues the sector remains underowned after being left out of the bull market. She points to broadening technical strength, with 85% of XLE names above their 50-day moving average and 19% making 52-week highs even with crude in the 50s, and cites Hartnett's contrarian call, implying any oil uptick could drive further gains.
Adding to SLB for energy exposure
Link says she bought SLB back in November and has been adding to it as part of her push to increase energy/commodity exposure. She frames it within the underowned energy sector thesis rather than giving a separate company-specific catalyst.
Safest way to play energy rebound
Link bought Exxon as an exemplar of the improving energy space and calls it the safest way to play the sector, although she does not expect it to go up the most. The rationale is the sector-wide recovery and underowned positioning, with energy stocks left out of the bull market and now showing broader strength even with crude in the 50s.
