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

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In the latest trading session, Chevron (CVX - Free Report) closed at $128.96, marking a +1.7% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Coming into today, shares of the oil company had gained 13.52% in the past month. In that same time, the Oils-Energy sector gained 13.24%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from Chevron as it approaches its next earnings report date. This is expected to be January 28, 2022. In that report, analysts expect Chevron to post earnings of $3.01 per share. This would mark year-over-year growth of 30200%. Our most recent consensus estimate is calling for quarterly revenue of $43.92 billion, up 73.96% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Chevron. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1% higher. Chevron currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Chevron is currently trading at a Forward P/E ratio of 13.13. Its industry sports an average Forward P/E of 6.36, so we one might conclude that Chevron is trading at a premium comparatively.

It is also worth noting that CVX currently has a PEG ratio of 2.9. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.68 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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