Back to top

Image: Bigstock

Chevron (CVX) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

In the latest trading session, Chevron (CVX - Free Report) closed at $155.27, marking a -0.77% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.42%.

Coming into today, shares of the oil company had gained 1.31% in the past month. In that same time, the Oils-Energy sector gained 6.42%, while the S&P 500 gained 2.67%.

The upcoming earnings release of Chevron will be of great interest to investors. The company is expected to report EPS of $3.06, down 13.8% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $51.13 billion, showing a 0.65% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.04 per share and revenue of $213.69 billion, which would represent changes of -0.69% and +6.34%, respectively, from the prior year.

Investors should also note any 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Chevron presently features a Zacks Rank of #3 (Hold).

Investors should also note Chevron's current valuation metrics, including its Forward P/E ratio of 11.99. This valuation marks a premium compared to its industry's average Forward P/E of 7.46.

We can also see that CVX currently has a PEG ratio of 2.4. 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. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.99.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chevron Corporation (CVX) - free report >>

Published in