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Why the Market Dipped But Chevron (CVX) Gained Today

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Chevron (CVX - Free Report) ended the recent trading session at $148.85, demonstrating a +1.93% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.84%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq decreased by 0.91%.

Heading into today, shares of the oil company had gained 2.77% over the past month, outpacing the Oils-Energy sector's loss of 0% and the S&P 500's gain of 1.44%.

The upcoming earnings release of Chevron will be of great interest to investors. It is anticipated that the company will report an EPS of $1.58, marking a 38.04% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $46.98 billion, down 8.21% from the year-ago period.

CVX's full-year Zacks Consensus Estimates are calling for earnings of $6.87 per share and revenue of $190.14 billion. These results would represent year-over-year changes of -31.64% and -6.24%, respectively.

Investors might also notice recent changes to analyst estimates for Chevron. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% decrease. Right now, Chevron possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Chevron is holding a Forward P/E ratio of 21.26. This valuation marks a premium compared to its industry average Forward P/E of 10.93.

Meanwhile, CVX's PEG ratio is currently 2.56. 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 1.86.

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 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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