Chevron Corp (CVX)

[Timothy Smith]

Chevron's third quarter earnings release painted a poorer profitability compared to the record breaking prior quarter.

What remains, though, is a picture of strong core operations with reductions in volume accounting for only a portion of the loss of profit, and foreign exchange fluctuations and oil prices accounting for the rest.

Furthermore, Chevron's acquisitions and expansions in the LNG field and the operations in the U.S. are promising, and show a clear vision of focused expansions on higher margin work by the company.

However, at its current price hovering around $110 and a P/E around 9, Chevron is not sufficiently discounted but be sure to keep in mind the impact of the nearest earnings release scheduled for February 1, 2013 and any news releases concerning the legal suits.