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Chevron (CVX) Gains But Lags Market: What You Should Know

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In the latest trading session, Chevron (CVX - Free Report) closed at $74.51, marking a +0.69% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 0.88%, and the Nasdaq, a tech-heavy index, added 2.56%.

Coming into today, shares of the oil company had lost 5.31% in the past month. In that same time, the Oils-Energy sector lost 5.43%, while the S&P 500 gained 2.44%.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be October 30, 2020. On that day, CVX is projected to report earnings of -$0.11 per share, which would represent a year-over-year decline of 106.92%. Meanwhile, our latest consensus estimate is calling for revenue of $25.46 billion, down 29.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.01 per share and revenue of $101.44 billion, which would represent changes of -99.84% and -30.77%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CVX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 93.88% lower. CVX is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, CVX currently has a Forward P/E ratio of 12333.33. Its industry sports an average Forward P/E of 30.45, so we one might conclude that CVX is trading at a premium comparatively.

Investors should also note that CVX has a PEG ratio of 2466.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVX's industry had an average PEG ratio of 14.94 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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