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

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Chevron (CVX - Free Report) closed at $127.18 in the latest trading session, marking a +0.21% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.19%.

Heading into today, shares of the oil company had gained 9.02% over the past month, outpacing the Oils-Energy sector's gain of 9% and the S&P 500's loss of 5.39% in that time.

Chevron will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2022. The company is expected to report EPS of $3.07, up 30800% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $45.01 billion, up 78.29% from the year-ago period.

Any recent changes to analyst estimates for Chevron should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.57% higher within the past month. Chevron is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Chevron is holding a Forward P/E ratio of 12.6. For comparison, its industry has an average Forward P/E of 5.87, which means Chevron is trading at a premium to the group.

Meanwhile, CVX's PEG ratio is currently 2.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.65 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% 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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