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

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In the latest trading session, Chevron (CVX - Free Report) closed at $158.71, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.

Prior to today's trading, shares of the oil company had lost 7.15% over the past month. This has lagged the Oils-Energy sector's loss of 7.03% 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. In that report, analysts expect Chevron to post earnings of $3.37 per share. This would mark year-over-year growth of 0.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.45 billion, down 9.06% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.87 per share and revenue of $216.01 billion, which would represent changes of -21.03% and -12.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Chevron. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.67% lower. Chevron is currently a Zacks Rank #3 (Hold).

Investors should also note Chevron's current valuation metrics, including its Forward P/E ratio of 10.74. This represents a premium compared to its industry's average Forward P/E of 5.47.

It is also worth noting that CVX currently has a PEG ratio of 0.75. 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 0.66 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 31, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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