Chevron (CVX) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Chevron (CVX) closed at $144.78, marking a -1.5% move from the previous day. This change lagged the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the oil company had lost 16.64% in the past month. In that same time, the Oils-Energy sector lost 14.09%, while the S&P 500 lost 8.06%.

Chevron will be looking to display strength as it nears its next earnings release. On that day, Chevron is projected to report earnings of $4.65 per share, which would represent year-over-year growth of 171.93%. Meanwhile, our latest consensus estimate is calling for revenue of $54.14 billion, up 44.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.40 per share and revenue of $221.53 billion. These totals would mark changes of +114.02% and +36.35%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Chevron. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.66% higher within the past month. Chevron is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Chevron currently has a Forward P/E ratio of 8.45. This represents a premium compared to its industry's average Forward P/E of 5.2.

Meanwhile, CVX's PEG ratio is currently 0.64. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.55 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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