Chevron, Exxon Mobil: Gasoline Stocks to Pump Up Your Portfolio
NEW YORK ( TheStreet) -- Drivers paid a national average of $3.41 per gallon of gasoline over this year's Labor Day holiday, down from $3.59 last year and down from the record holiday high set at $3.83 in 2012.
With vacation season over, investors should consider investing in shares of Chevron
Read More: 10 Stocks George Soros Is Buying
It's all about valuations, dividend yields, technical analysis, and value levels and risky levels. The four gasoline stocks to buy have 12-month trailing price-to-earnings ratios between 12 and 15 with dividend yields between 2% and 4%. Hess has an elevated P/E ratio and low dividend yield.
Chevron and Exxon Mobil are components of the Dow Jones Industrial Average ; only four other Dow stocks have lower P/E ratios but also have lower dividend yields. Five other Dow stocks have higher dividend yields but also have higher P/E ratios. This makes the oil giants prudent portfolio candidates.
Here's how to trade the five gas station stocks.
Chevron ($129.45) set an all-time intraday high at $135.10 on July 24 then followed crude oil lower trading as low as $124.58 on August 5. The stock closed last week just below its 50-day simple moving average at $129.62.
The stock has a 12-month trailing price-to-earnings ratio of 12.3 and dividend yield at 3.3%.
The weekly chart shifts to negative given a close this Friday below its five-week modified moving average at $128.27. Weekly and monthly value levels are $126.65 and $122.28, respectively, with annual and semiannual risky levels at $132.08 and $132.91, respectively.
Marathon ($41.69) set an all-time intraday high at $41.74 on Friday and has been above its 200-day simple moving average at $36.39 since April 14. I have noticed several new Marathon stations in Tampa in recent months.
The stock has a 12-month trailing price-to-earnings ratio of 14.8 and dividend yield at 2.0%.
The weekly chart is positive with its five-week MMA at $39.70. Weekly and monthly value levels are $39.58 and $39.31, respectively, with a semiannual pivot at $40.09 and quarterly and semiannual risky levels at $43.46 and $44.69, respectively.
Royal Dutch Shell ($41.69) set a multiyear $83.42 on July 2 then declined as low as $78.72 on August 13 and ended Friday below its 50-day SMA at $81.42 on Friday. This stock trades in the U.S. market as an ADR.
The stock has a 12-month trailing P/E of 12.1 and dividend yield at 4.0%.
The weekly chart shifts to negative given a close on Friday below its five-week MMA at $80.56.
Exxon Mobil ($99.46) set an all-time intraday high at $104.76 on July 29 then traded as low as $97.63 holding its 200-day SMA then at $97.73. The 200-day ended last week at $98.44.