StockMarket.com: 2 Oil Stocks to Watch in October

The energy market has started to shift back into favor after lagging in the first half of 2023. Crucially, events such as OPEC production cuts and geopolitical fears are pushing prices higher. That bodes well for energy investors in the months ahead.

In the energy space, oil continues to dominate. Prices moved to $95 per barrel in September, before a swift drop to the low $80 range. Today, they’re trending higher again.

Investors don’t need to find a small-cap play. Thanks to the recent selloff, plenty of big-name energy companies trade at a reasonable price now. And they offer solid dividend payments along the way.

One of the world’s leading energy players, Chevron (CVX), is notable now. The company has global operations, reducing the risk from being in any one specific region or country. And it has diversified operations, including exploration, production, and refining.

That diversified portfolio can pay off from rising prices, as sometimes some segments such as refining are more profitable than production.

Shares are trading at just 10 times earnings, and are down about 12 percent from their 52-week highs. Chevron also pays a 3.7 percent dividend. That’s on the higher range for the energy space outside of specialty companies like pipelines.

Overall, with the energy market looking strong going into the final quarter of the year, investors may want to buy a beaten-down big name here.

To read the full analysis and other energy stock to watch now, click here.