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Chevron (CVX) Ascends While Market Falls: Some Facts to Note

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Chevron (CVX - Free Report) closed the most recent trading day at $145.57, moving +1.66% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%.

The oil company's shares have seen an increase of 3.88% over the last month, not keeping up with the Oils-Energy sector's gain of 4.89% and the S&P 500's gain of 5.17%.

Analysts and investors alike will be keeping a close eye on the performance of Chevron in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 38.04% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $46.87 billion, reflecting a 8.41% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.09 per share and a revenue of $190.14 billion, indicating changes of -29.45% and -6.24%, respectively, from the former 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Chevron is currently a Zacks Rank #3 (Hold).

Investors should also note Chevron's current valuation metrics, including its Forward P/E ratio of 20.18. Its industry sports an average Forward P/E of 10.53, so one might conclude that Chevron is trading at a premium comparatively.

We can also see that CVX currently has a PEG ratio of 2.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.8.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.


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