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Why Chevron (CVX) Outpaced the Stock Market Today

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In the latest trading session, Chevron (CVX - Free Report) closed at $162, marking a +0.45% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.15%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.32%.

Heading into today, shares of the oil company had gained 6.1% over the past month, lagging the Oils-Energy sector's gain of 8.57% and outpacing the S&P 500's gain of 1.65% in that time.

The investment community will be closely monitoring the performance of Chevron in its forthcoming earnings report. The company is scheduled to release its earnings on April 26, 2024. The company is predicted to post an EPS of $3.06, indicating a 13.8% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $51.17 billion, indicating a 0.74% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.19 per share and revenue of $213.74 billion. These totals would mark changes of +0.46% and +6.36%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.54% higher within the past month. Chevron is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Chevron has a Forward P/E ratio of 12.22 right now. This represents a premium compared to its industry's average Forward P/E of 7.79.

Investors should also note that CVX has a PEG ratio of 2.44 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - International industry stood at 2.09 at the close of the market yesterday.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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