Chevron (CVX) Stock Sinks As Market Gains: What You Should Know

Chevron (CVX) closed the most recent trading day at $140.78, moving -1.32% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the oil company had lost 20.83% over the past month. This has lagged the Oils-Energy sector's loss of 19.28% and the S&P 500's loss of 6.59% in that time.

Wall Street will be looking for positivity from Chevron as it approaches its next earnings report date. This is expected to be July 29, 2022. On that day, Chevron is projected to report earnings of $4.66 per share, which would represent year-over-year growth of 172.51%. Meanwhile, our latest consensus estimate is calling for revenue of $54.14 billion, up 44.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.42 per share and revenue of $221.53 billion, which would represent changes of +114.27% and +36.35%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Chevron. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 2.78% higher. Chevron currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Chevron has a Forward P/E ratio of 8.19 right now. Its industry sports an average Forward P/E of 4.63, so we one might conclude that Chevron is trading at a premium comparatively.

Also, we should mention that CVX has a PEG ratio of 0.62. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.5 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 84, putting it in the top 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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