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

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Chevron (CVX - Free Report) closed at $158.53 in the latest trading session, marking a +0.57% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the oil company had gained 0.32% over the past month, outpacing the Oils-Energy sector's loss of 0.9% and the S&P 500's loss of 3.29% in that time.

Investors will be hoping for strength from Chevron as it approaches its next earnings release, which is expected to be October 28, 2022. On that day, Chevron is projected to report earnings of $5.22 per share, which would represent year-over-year growth of 76.35%. Our most recent consensus estimate is calling for quarterly revenue of $58.57 billion, up 31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.34 per share and revenue of $238.1 billion. These totals would mark changes of +125.58% and +46.56%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Chevron. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.29% higher. Chevron is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Chevron currently has a Forward P/E ratio of 8.59. This represents a premium compared to its industry's average Forward P/E of 4.12.

Investors should also note that CVX has a PEG ratio of 0.61 right now. 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. CVX's industry had an average PEG ratio of 0.38 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 136, which puts it in the bottom 47% 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.

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


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