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

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In the latest trading session, Chevron (CVX - Free Report) closed at $109.56, marking a -0.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the oil company had gained 13.28% over the past month. This has outpaced the Oils-Energy sector's gain of 11.77% and the S&P 500's loss of 0.12% in that time.

CVX will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2021. In that report, analysts expect CVX to post earnings of $2.20 per share. This would mark year-over-year growth of 1900%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.52 billion, up 69.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.29 per share and revenue of $147.73 billion. These totals would mark changes of +3745% and +56.02%, respectively, from last year.

Any recent changes to analyst estimates for CVX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 8.46% higher. CVX is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, CVX is holding a Forward P/E ratio of 15.03. This valuation marks a premium compared to its industry's average Forward P/E of 8.8.

We can also see that CVX currently has a PEG ratio of 3.01. 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 0.65 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 13, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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