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Chevron (CVX) Stock Sinks As Market Gains: What You Should Know

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Chevron (CVX - Free Report) closed at $77.28 in the latest trading session, marking a -0.53% move from the prior day. This move lagged the S&P 500's daily gain of 1.27%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.

Heading into today, shares of the oil company had lost 13.51% over the past month, lagging the Oils-Energy sector's loss of 9.84% and the S&P 500's gain of 0.37% in that time.

Wall Street will be looking for positivity from CVX as it approaches its next earnings report date. On that day, CVX is projected to report earnings of $0 per share, which would represent a year-over-year decline of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.52 billion, down 29.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.10 per share and revenue of $101.91 billion. These totals would mark changes of -98.41% and -30.44%, respectively, from last 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 70.12% lower. CVX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that CVX has a Forward P/E ratio of 792.76 right now. For comparison, its industry has an average Forward P/E of 23.16, which means CVX is trading at a premium to the group.

Meanwhile, CVX's PEG ratio is currently 158.55. 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. CVX's industry had an average PEG ratio of 18.85 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% 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.

To follow CVX in the coming trading sessions, be sure to utilize Zacks.com.


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