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

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In the latest trading session, Chevron (CVX - Free Report) closed at $147.26, marking a -0.4% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq appreciated by 1.24%.

The upcoming earnings release of Chevron will be of great interest to investors. The company is predicted to post an EPS of $2.44, indicating a 29.28% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $47.12 billion, indicating a 0.13% decrease compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Chevron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.13% lower within the past month. Chevron presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Chevron is currently being traded at a Forward P/E ratio of 12.67. This valuation marks a premium compared to its industry's average Forward P/E of 8.42.

Also, we should mention that CVX has a PEG ratio of 2.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.89.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 30% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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