We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chevron and Avis Budget have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 23, 2026 – Zacks Equity Research shares Chevron Corp. (CVX - Free Report) as the Bull of the Day and Avis Budget Group (CAR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Defiance Quantum ETF (QTUM) and Global X AI Semiconductor & Quantum ETF (CHPX - Free Report) .
Chevron Corp., a Zacks Rank #1 (Strong Buy), is one of the world’s largest integrated energy companies, with operations spanning the full oil and gas value chain from exploration to refining and chemicals.
The company is well positioned to benefit from higher oil prices thanks to its large, low-cost Permian production base, which drives strong cash flow as crude rises. Moreover, Chevron’s diversified global portfolio allows it to return capital through buybacks and dividends across a wide range of oil price environments.
With earnings coming early next month and oil staying elevated, investors might want to eye the recent pullback.
About the Company
Chevron operates primarily through its Upstream and Downstream segments, with Upstream focused on finding and producing crude oil and natural gas, while Downstream handles refining, marketing, and petrochemicals.
In 2025, its Upstream business generated $12.8 billion in profit versus $3 billion from Downstream. Growth is being driven by a strong project pipeline, including Permian Basin assets, the Tengizchevroil project in Kazakhstan, Gulf of America developments, and the pending Hess acquisition, which together helped fuel roughly 12% year over year production growth.
CVX is valued at $370 billion, has a Forward PE of 15 and pays a 3.8% dividend. The stock has Zacks Style Scores of “A” in Momentum, but “D” in Growth.
Q4 Earnings Beat
Chevron last reported back in January, seeing Q4 results at an adjusted EPS of $1.52 beating consensus of $1.44. Revenue came in at $46.9B versus $51.4B expected, but earnings were supported by strong upstream performance and record production, with total net oil-equivalent output of 4.05M boepd. This number was up meaningfully year over year and near record levels.
Cash generation was a key highlight, with operating cash flow rising to $10.8B, up from $5.3B a year earlier, even after capital spending of $5.3B. Downstream earnings were softer at $823M and free cash flow of $4.2B came in below last year.
The balance sheet remained conservative with net debt around 15.6%, and the company reinforced its capital return profile by raising the dividend 4% to $1.78 per share, marking continued progress toward its long streak of annual dividend growth.
Iran and Higher Oil Prices
Chevron rallied after earnings going from near $165 to $170. The stock then pushed higher after the Iran-driven oil shock as crude prices surged on fears of Strait of Hormuz disruptions and broader supply constraints. CVX accelerated to roughly $214 as crude oil spiked above $110 and markets repriced upstream earnings higher.
This spike reflected the classic leverage of integrated oil names to geopolitical supply shocks: higher crude flowed directly into stronger cash flow expectations, lifting CVX in tandem with the oil move rather than lagging it.
Chevron’s earnings power and free cash flow outlook reset higher, driving the sharp repricing in the stock. However, it has since pulled back since the Iran cease fire that came with a crude oil move into the $80s.
Estimates Head Higher After Current Quarter
Earnings estimates for the current quarter have been lowered, but what investors will pay attention to is the outlook. Q1 is essentially a throwaway quarter but the structural setup for H2 2026 and into 2027 is increasingly bullish.
For the current quarter, estimates have gone from $1.69 to $1.09 over the last month. But looking at next quarter estimates have gone from $2.13 to $4.40, more than doubling.
Looking at the current year, we see a 70% move higher in estimates, going from $7.25 to $12.50. And next year estimates continue higher, going from $8.82 to $11.39 during that same monthly time frame.
After being stuck in the $140-160 trading range for the last four years, the stock has seen a large breakout and is now falling into consolidation.
Let us look at those moving averages
21-day: $195
50-day: $192
200-day: $165
If oil were to fall back below $80, the stock could fall back into the upper end of the range around $165, where it would find support. However, if oil prices stay elevated, the stock could see another round of upside with a move over $195.
In Summary
CVX has broken out of a four-year trading range and is consolidating at levels that reflect a fundamentally reset earnings outlook. The stock remains a core energy holding for anyone looking to play elevated crude with a blue-chip balance sheet behind it.
The recent pullback gives investors a clean entry point ahead of earnings, and with the $180 level acting as near-term support, the risk/reward sets up well.
Avis Budget Group, a Zacks Rank #5 (Strong Sell), is one of the most talked-about stocks in the market right now, but investors are playing nothing but a short squeeze.
The move has been spectacular, but when the dust settles, investors will be left staring at a business that posted a net loss of nearly a billion dollars and is trading at a valuation that has completely detached from reality.
About the Company
Founded in 1946 and headquartered in Parsippany, New Jersey, Avis Budget Group is one of the world's largest vehicle rental companies. The company operates the Avis, Budget, and Zipcar brands across roughly 180 countries.
Avis generates revenue primarily through daily and weekly vehicle rentals to both leisure and commercial customers, with fleet management and utilization rates serving as the key operational levers that drive profitability.
The company has a market cap of $25B, with a Zacks Style Score of “B” in Momentum, but “D” in both Value and Growth.
A Short Squeeze Built on a Shaky Foundation
The bull narrative is straightforward as auto tariffs drive up new car prices, helping used vehicle values rise. With Avis sitting on a massive rental fleet, it benefits from better residual values and lower per-unit depreciation.
Since March 20ththe stock has gone from $100 to $847. This buying has been driven by forced short covering rather than any fundamental improvement in the business.
The reality is that earnings tell a different story than the stock.
Q4 revenues slightly below expectations, but the company posted a net loss of $995 million and Adjusted EBITDA of just $748 million. Q4 alone produced a net loss of $856 million, including a $518 million impairment charge tied to its electric vehicle fleet, which management was forced to write down after shortening the useful life of those assets.
Earnings Estimates Are Going the Wrong Direction
Looking past the current quarter and large move lower, estimates are still seeing numbers go lower over the last 60 days.
For next quarter, estimates have gone from $3.03 to $2.79
For the current year, $7.30 to $3.64.
And for next year, $10.11 to $8.08.
These are not the numbers that would justify a move like we have seen in the stock. Instead, the up move has stemmed from a low float short squeeze that has brought the stock into extreme overbought territory.
Technical Take
The RSI on CAR recently hit extreme overbought and unsustainable territory above 95. This level provides an area where in the past there has been a violent mean reversion once the squeeze exhausts itself.
The upcoming earnings report in early May will be the event that forces the market to reconcile the rally with the actual P&L.
For those interested in the bullish narrative, they should wait for the levels below and take caution if earnings are not positive.
Fibonacci Retracement (50%): $475
Fibonacci Retracement (61.8%): $385
Moving averages
21-day: $312
50-day: $190
200-day: $160
In Summary
In the end, this rally looks far more technical than fundamental. A powerful short squeeze has driven an extraordinary move, but it has done so against the backdrop of deteriorating earnings, collapsing estimates, and a business still working through significant operational headwinds.
Additional content:
Time to Bet on Quantum ETFs?
Quantum computing — an early-stage technological sphere — has been hitting headlines for quite some time now, thanks to its ability to accelerate computing power, and immense potential for growth.
A fresh wave of industry breakthroughs, rising corporate spending and notable commercialization momentum have been driving the space. Defiance Quantum ETF has added about 86% over the past year and about 16% over the past month.
Breakthroughs Fueling Market Excitement
Quantum stocks rallied sharply last week, driven by excitement around NVIDIA’s new open-source AI models aimed at advancing quantum computing, as quoted on CNBC. The chip giant’s push into open-source AI models has acted as a catalyst for the broader ecosystem. These advancements are narrowing the gap between classical and quantum systems—a needed step toward commercialization.
At the same time, governments and corporations are ramping up funding. The United States, China and Europe continue to invest billions into quantum research, while tech leaders race to achieve “quantum advantage.” China led global quantum technology investment with $17.6 billion as of 2024, while U.S. companies dominated investments in quantum computing, per CNBC.
Tech giants like Microsoft, Alphabet, Amazon and IBM are investing heavily, with IBM targeting a fault-tolerant quantum computer by 2029. IonQ also made headlines by linking two remote quantum computers -- a key technical achievement -- and securing a contract with the Defense Advanced Research Projects Agency.
Growth Trajectory of Quantum Computing
In 2024 and 2025, several companies and research groups demonstrated improved quantum error correction, a prerequisite for building reliable machines, as quoted on CNBC. Other milestones include higher qubit counts, enabling more complex problem-solving that improves reliability by reducing noise and errors, the same CNBC article noted.
Practical quantum advantage is expected around 2028-2029, with wider commercial use in the 2030s, Velu Sinha, partner, Bain & Company, told CNBC. “Quantum is one of a small number of technology categories investors view as structurally inevitable ... The addressable market at full maturity is estimated at $100 to $250 billion, Sinha added, as mentioned on the same CNBC source.
Volatility: A Risk
Despite the rally, the sector remains small and highly volatile. Many stocks are still down year to date, reflecting the speculative nature of the space.
ETFs Offer Diversified Exposure
Given the high risk and uncertainty associated with individual quantum stocks, ETFs provide a more balanced way to tap the theme.Funds like the Defiance Quantum ETF and the Global X AI Semiconductor & Quantum ETF (CHPX) offer diversified exposure across the quantum value chain.
The ETFs hold pure-play quantum firms. Semiconductor companies enabling quantum hardware and Cloud and AI leaders supporting quantum development also get a place in the fund’s kitty. The fund CHPX has added 27.6%, while QTUM has advanced about 14.7% in the year-to-date frame.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
Chevron and Avis Budget have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 23, 2026 – Zacks Equity Research shares Chevron Corp. (CVX - Free Report) as the Bull of the Day and Avis Budget Group (CAR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Defiance Quantum ETF (QTUM) and Global X AI Semiconductor & Quantum ETF (CHPX - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Chevron Corp., a Zacks Rank #1 (Strong Buy), is one of the world’s largest integrated energy companies, with operations spanning the full oil and gas value chain from exploration to refining and chemicals.
The company is well positioned to benefit from higher oil prices thanks to its large, low-cost Permian production base, which drives strong cash flow as crude rises. Moreover, Chevron’s diversified global portfolio allows it to return capital through buybacks and dividends across a wide range of oil price environments.
With earnings coming early next month and oil staying elevated, investors might want to eye the recent pullback.
About the Company
Chevron operates primarily through its Upstream and Downstream segments, with Upstream focused on finding and producing crude oil and natural gas, while Downstream handles refining, marketing, and petrochemicals.
In 2025, its Upstream business generated $12.8 billion in profit versus $3 billion from Downstream. Growth is being driven by a strong project pipeline, including Permian Basin assets, the Tengizchevroil project in Kazakhstan, Gulf of America developments, and the pending Hess acquisition, which together helped fuel roughly 12% year over year production growth.
CVX is valued at $370 billion, has a Forward PE of 15 and pays a 3.8% dividend. The stock has Zacks Style Scores of “A” in Momentum, but “D” in Growth.
Q4 Earnings Beat
Chevron last reported back in January, seeing Q4 results at an adjusted EPS of $1.52 beating consensus of $1.44. Revenue came in at $46.9B versus $51.4B expected, but earnings were supported by strong upstream performance and record production, with total net oil-equivalent output of 4.05M boepd. This number was up meaningfully year over year and near record levels.
Cash generation was a key highlight, with operating cash flow rising to $10.8B, up from $5.3B a year earlier, even after capital spending of $5.3B. Downstream earnings were softer at $823M and free cash flow of $4.2B came in below last year.
The balance sheet remained conservative with net debt around 15.6%, and the company reinforced its capital return profile by raising the dividend 4% to $1.78 per share, marking continued progress toward its long streak of annual dividend growth.
Iran and Higher Oil Prices
Chevron rallied after earnings going from near $165 to $170. The stock then pushed higher after the Iran-driven oil shock as crude prices surged on fears of Strait of Hormuz disruptions and broader supply constraints. CVX accelerated to roughly $214 as crude oil spiked above $110 and markets repriced upstream earnings higher.
This spike reflected the classic leverage of integrated oil names to geopolitical supply shocks: higher crude flowed directly into stronger cash flow expectations, lifting CVX in tandem with the oil move rather than lagging it.
Chevron’s earnings power and free cash flow outlook reset higher, driving the sharp repricing in the stock. However, it has since pulled back since the Iran cease fire that came with a crude oil move into the $80s.
Estimates Head Higher After Current Quarter
Earnings estimates for the current quarter have been lowered, but what investors will pay attention to is the outlook. Q1 is essentially a throwaway quarter but the structural setup for H2 2026 and into 2027 is increasingly bullish.
For the current quarter, estimates have gone from $1.69 to $1.09 over the last month. But looking at next quarter estimates have gone from $2.13 to $4.40, more than doubling.
Looking at the current year, we see a 70% move higher in estimates, going from $7.25 to $12.50. And next year estimates continue higher, going from $8.82 to $11.39 during that same monthly time frame.
Chevron Corporation price-consensus-chart | Chevron Corporation Quote
The Technical Take
After being stuck in the $140-160 trading range for the last four years, the stock has seen a large breakout and is now falling into consolidation.
Let us look at those moving averages
21-day: $195
50-day: $192
200-day: $165
If oil were to fall back below $80, the stock could fall back into the upper end of the range around $165, where it would find support. However, if oil prices stay elevated, the stock could see another round of upside with a move over $195.
In Summary
CVX has broken out of a four-year trading range and is consolidating at levels that reflect a fundamentally reset earnings outlook. The stock remains a core energy holding for anyone looking to play elevated crude with a blue-chip balance sheet behind it.
The recent pullback gives investors a clean entry point ahead of earnings, and with the $180 level acting as near-term support, the risk/reward sets up well.
Bear of the Day:
Avis Budget Group, a Zacks Rank #5 (Strong Sell), is one of the most talked-about stocks in the market right now, but investors are playing nothing but a short squeeze.
The move has been spectacular, but when the dust settles, investors will be left staring at a business that posted a net loss of nearly a billion dollars and is trading at a valuation that has completely detached from reality.
About the Company
Founded in 1946 and headquartered in Parsippany, New Jersey, Avis Budget Group is one of the world's largest vehicle rental companies. The company operates the Avis, Budget, and Zipcar brands across roughly 180 countries.
Avis generates revenue primarily through daily and weekly vehicle rentals to both leisure and commercial customers, with fleet management and utilization rates serving as the key operational levers that drive profitability.
The company has a market cap of $25B, with a Zacks Style Score of “B” in Momentum, but “D” in both Value and Growth.
A Short Squeeze Built on a Shaky Foundation
The bull narrative is straightforward as auto tariffs drive up new car prices, helping used vehicle values rise. With Avis sitting on a massive rental fleet, it benefits from better residual values and lower per-unit depreciation.
Since March 20ththe stock has gone from $100 to $847. This buying has been driven by forced short covering rather than any fundamental improvement in the business.
The reality is that earnings tell a different story than the stock.
Q4 revenues slightly below expectations, but the company posted a net loss of $995 million and Adjusted EBITDA of just $748 million. Q4 alone produced a net loss of $856 million, including a $518 million impairment charge tied to its electric vehicle fleet, which management was forced to write down after shortening the useful life of those assets.
Earnings Estimates Are Going the Wrong Direction
Looking past the current quarter and large move lower, estimates are still seeing numbers go lower over the last 60 days.
For next quarter, estimates have gone from $3.03 to $2.79
For the current year, $7.30 to $3.64.
And for next year, $10.11 to $8.08.
These are not the numbers that would justify a move like we have seen in the stock. Instead, the up move has stemmed from a low float short squeeze that has brought the stock into extreme overbought territory.
Technical Take
The RSI on CAR recently hit extreme overbought and unsustainable territory above 95. This level provides an area where in the past there has been a violent mean reversion once the squeeze exhausts itself.
The upcoming earnings report in early May will be the event that forces the market to reconcile the rally with the actual P&L.
For those interested in the bullish narrative, they should wait for the levels below and take caution if earnings are not positive.
Fibonacci Retracement (50%): $475
Fibonacci Retracement (61.8%): $385
Moving averages
21-day: $312
50-day: $190
200-day: $160
In Summary
In the end, this rally looks far more technical than fundamental. A powerful short squeeze has driven an extraordinary move, but it has done so against the backdrop of deteriorating earnings, collapsing estimates, and a business still working through significant operational headwinds.
Additional content:
Time to Bet on Quantum ETFs?
Quantum computing — an early-stage technological sphere — has been hitting headlines for quite some time now, thanks to its ability to accelerate computing power, and immense potential for growth.
A fresh wave of industry breakthroughs, rising corporate spending and notable commercialization momentum have been driving the space. Defiance Quantum ETF has added about 86% over the past year and about 16% over the past month.
Breakthroughs Fueling Market Excitement
Quantum stocks rallied sharply last week, driven by excitement around NVIDIA’s new open-source AI models aimed at advancing quantum computing, as quoted on CNBC. The chip giant’s push into open-source AI models has acted as a catalyst for the broader ecosystem. These advancements are narrowing the gap between classical and quantum systems—a needed step toward commercialization.
At the same time, governments and corporations are ramping up funding. The United States, China and Europe continue to invest billions into quantum research, while tech leaders race to achieve “quantum advantage.” China led global quantum technology investment with $17.6 billion as of 2024, while U.S. companies dominated investments in quantum computing, per CNBC.
Tech giants like Microsoft, Alphabet, Amazon and IBM are investing heavily, with IBM targeting a fault-tolerant quantum computer by 2029. IonQ also made headlines by linking two remote quantum computers -- a key technical achievement -- and securing a contract with the Defense Advanced Research Projects Agency.
Growth Trajectory of Quantum Computing
In 2024 and 2025, several companies and research groups demonstrated improved quantum error correction, a prerequisite for building reliable machines, as quoted on CNBC. Other milestones include higher qubit counts, enabling more complex problem-solving that improves reliability by reducing noise and errors, the same CNBC article noted.
Practical quantum advantage is expected around 2028-2029, with wider commercial use in the 2030s, Velu Sinha, partner, Bain & Company, told CNBC. “Quantum is one of a small number of technology categories investors view as structurally inevitable ... The addressable market at full maturity is estimated at $100 to $250 billion, Sinha added, as mentioned on the same CNBC source.
Volatility: A Risk
Despite the rally, the sector remains small and highly volatile. Many stocks are still down year to date, reflecting the speculative nature of the space.
ETFs Offer Diversified Exposure
Given the high risk and uncertainty associated with individual quantum stocks, ETFs provide a more balanced way to tap the theme.Funds like the Defiance Quantum ETF and the Global X AI Semiconductor & Quantum ETF (CHPX) offer diversified exposure across the quantum value chain.
The ETFs hold pure-play quantum firms. Semiconductor companies enabling quantum hardware and Cloud and AI leaders supporting quantum development also get a place in the fund’s kitty. The fund CHPX has added 27.6%, while QTUM has advanced about 14.7% in the year-to-date frame.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.