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Chevron (CVX) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Chevron (CVX - Free Report) standing at $149.77, reflecting a -1.41% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.04% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.

The oil company's stock has climbed by 5.56% in the past month, exceeding the Oils-Energy sector's gain of 2.41% and the S&P 500's gain of 5.28%.

The investment community will be paying close attention to the earnings performance of Chevron in its upcoming release. The company is predicted to post an EPS of $3.60, indicating a 11.98% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $54.87 billion, indicating a 2.84% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $13.14 per share and a revenue of $208.64 billion, demonstrating changes of -30.22% and -15.27%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chevron. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.32% lower. Currently, Chevron is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Chevron is currently trading at a Forward P/E ratio of 11.56. For comparison, its industry has an average Forward P/E of 6.48, which means Chevron is trading at a premium to the group.

We can additionally observe that CVX currently boasts a PEG ratio of 0.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 0.85.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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