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Chevron (CVX) Stock Sinks As Market Gains: Here's Why

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Chevron (CVX - Free Report) closed at $151.65 in the latest trading session, marking a -2.36% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.

Coming into today, shares of the oil company had gained 6.44% in the past month. In that same time, the Oils-Energy sector gained 2.89%, while the S&P 500 gained 3.97%.

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 August 1, 2025. The company is predicted to post an EPS of $1.61, indicating a 36.86% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $46.87 billion, showing a 8.41% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.12 per share and revenue of $190.14 billion, which would represent changes of -29.15% and -6.24%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chevron. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% upward. 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 21.8. This denotes a premium relative to the industry average Forward P/E of 11.14.

We can additionally observe that CVX currently boasts a PEG ratio of 2.63. 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. CVX's industry had an average PEG ratio of 1.98 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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