Chevron (CVX) Outpaces Stock Market Gains: What You Should Know
Chevron (CVX) closed at $154.58 in the latest trading session, marking a +1.47% move from the prior day. This change outpaced the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Coming into today, shares of the oil company had lost 6.45% in the past month. In that same time, the Oils-Energy sector lost 9.72%, while the S&P 500 lost 3.9%.
Chevron will be looking to display strength as it nears its next earnings release. In that report, analysts expect Chevron to post earnings of $3.35 per share. This would mark a year-over-year decline of 0.3%. Our most recent consensus estimate is calling for quarterly revenue of $49.45 billion, down 9.06% from the year-ago period.
CVX's full-year Zacks Consensus Estimates are calling for earnings of $14.73 per share and revenue of $216.01 billion. These results would represent year-over-year changes of -21.77% and -12.28%, respectively.
Any recent changes to analyst estimates for Chevron should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.25% lower. Chevron is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Chevron is currently trading at a Forward P/E ratio of 10.35. This valuation marks a premium compared to its industry's average Forward P/E of 5.35.
Meanwhile, CVX's PEG ratio is currently 0.73. 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 0.66 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 47, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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