These 2 Mega-Cap Stalwart Stocks Just Hit All-Time Highs

The stock market had another up-and-down day on Monday, as investors tried to get used to volatile conditions. Important questions like whether inflation will prove to be fleeting or how much the Federal Reserve might act to boost interest rates won't get answers in the immediate term. But market participants are still looking to figure out how best to invest for whatever may come. The Dow Jones Industrial Average (^DJI -0.98%) eked out the tiniest of gains, but the Nasdaq Composite (^IXIC -0.64%) and the S&P 500 (^GSPC -0.46%) finished lower.

Data source: Yahoo! Finance.

Even as the market continues to trade well below its record levels from several months ago, the same isn't true for certain individual stocks. Indeed, a pair of mega-cap stocks not only posted gains on the day but also managed to hit new all-time highs on Monday. Below, we'll take a closer look at what sent Chevron (CVX 1.04%) and AbbVie (ABBV -0.30%) to new heights.

Chevron keeps climbing

Shares of Chevron were up nearly 2% on the day. That brought the gains over the past year to nearly 50%, as the oil giant's  fundamental business prospects have become a lot more attractive.

Image source: Getty Images.

Obviously, the recent rise in oil prices has played a key role in Chevron's turnaround. Crude oil prices were actually down on Monday, but they remained well above $90 per barrel. That's a big boon for Chevron, given its impressive slate of energy assets across the globe.

Moreover, in a market in which many investors are growing increasingly defensive, Chevron's valuation hasn't yet gotten out of hand. The stock currently trades at about 17 times its earnings over the past 12 months. If oil prices stay high, moreover, then earnings are likely to grow considerably. Some analysts already believe that the company could earn as much as $15 per share in the coming year, which would put the stock's current value at less than 10 times forward estimates.

Investors have had high expectations for the company, so it can't afford to coast on its past success. Nevertheless, if energy markets remain favorable, Chevron has more gas in the tank to generate further gains.

AbbVie stays healthy

Elsewhere, shares of AbbVie also moved higher, gaining more than 1% on the day. The drugmaker's roughly 37% gains over the past year aren't quite as strong as Chevron's, but AbbVie has plenty of opportunities to keep growing.

It has worked hard to keep its pipeline robust, and that's generated success recently. Back in January, for instance, the company earned approval from the Food and Drug Administration for its Rinvoq for eczema, expanding the drug's indication to go beyond its initial treatment for moderate to severe rheumatoid arthritis or psoriatic arthritis.

More broadly, investors like AbbVie because of its long history of dividend growth. The stock currently yields 4%, and it has delivered annual dividend increases ever since it was spun off from former parent Abbott Labs.

Pharma stocks are traditionally seen as defensive, making them attractive in today's turbulent markets. That's one key reason AbbVie has been moving higher, and odds are good that the shares could keep gaining ground in the years ahead.