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Chevron (CVX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Chevron (CVX - Free Report) closed at $107.83, marking a -1.74% move from the previous day. This change lagged the S&P 500's 1.54% loss on the day. Elsewhere, the Dow lost 1.49%, while the tech-heavy Nasdaq lost 2.17%.

Prior to today's trading, shares of the oil company had lost 5.48% over the past month. This has was narrower than the Oils-Energy sector's loss of 10.97% and the S&P 500's loss of 6.77% in that time.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be February 1, 2019. On that day, CVX is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 182.19%. Our most recent consensus estimate is calling for quarterly revenue of $42.53 billion, up 13.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.76 per share and revenue of $165.67 billion, which would represent changes of +109.73% and +16.89%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CVX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.65% lower. CVX is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note CVX's current valuation metrics, including its Forward P/E ratio of 14.14. For comparison, its industry has an average Forward P/E of 9.79, which means CVX is trading at a premium to the group.

We can also see that CVX currently has a PEG ratio of 2.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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