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

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Chevron (CVX - Free Report) closed at $101.78 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day.

Coming into today, shares of the oil company had lost 7.44% in the past month. In that same time, the Oils-Energy sector lost 3.65%, while the S&P 500 gained 6.61%.

CVX will be looking to display strength as it nears its next earnings release, which is expected to be April 30, 2021. On that day, CVX is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 34.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.9 billion, down 1.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $127.79 billion. These totals would mark changes of +2605% and +34.96%, 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.45% higher. CVX is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, CVX currently has a Forward P/E ratio of 20.53. This represents a premium compared to its industry's average Forward P/E of 11.

We can also see that CVX currently has a PEG ratio of 4.11. 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 1.09 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 19, which puts it in the top 8% 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.

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


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