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Chevron (CVX) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Chevron (CVX - Free Report) closed at $142.09, marking a +1.05% move from the previous day. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.52%.

The oil company's shares have seen a decrease of 4.52% over the last month, not keeping up with the Oils-Energy sector's loss of 2.9% and the S&P 500's gain of 3.67%.

Market participants will be closely following the financial results of Chevron in its upcoming release. The company's earnings per share (EPS) are projected to be $3.01, reflecting a 1.31% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $52.35 billion, down 3.19% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.57 per share and revenue of $202.61 billion. These totals would mark changes of -11.88% and +0.83%, respectively, from last year.

Any recent changes to analyst estimates for Chevron should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.3% decrease. At present, Chevron boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Chevron is currently exchanging hands at a Forward P/E ratio of 12.15. This signifies a premium in comparison to the average Forward P/E of 7.74 for its industry.

One should further note that CVX currently holds a PEG ratio of 2.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CVX's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 220, this industry ranks in the bottom 14% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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