Chevron (CVX) Gains As Market Dips: What You Should Know
In the latest trading session, Chevron (CVX) closed at $172.52, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Heading into today, shares of the oil company had lost 7.19% over the past month, lagging the Oils-Energy sector's loss of 4.47% and the S&P 500's gain of 4.7% in that time.
Investors will be hoping for strength from Chevron as it approaches its next earnings release. On that day, Chevron is projected to report earnings of $4.39 per share, which would represent year-over-year growth of 71.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $54.84 billion, up 13.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.18 per share and revenue of $239.31 billion, which would represent changes of +135.92% and +47.3%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.34% higher. Chevron is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Chevron is holding a Forward P/E ratio of 8.97. Its industry sports an average Forward P/E of 4.31, so we one might conclude that Chevron is trading at a premium comparatively.
Investors should also note that CVX has a PEG ratio of 0.61 right now. 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. CVX's industry had an average PEG ratio of 0.61 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 68, putting it in the top 27% 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.
To follow CVX in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chevron Corporation (CVX) : Free Stock Analysis Report
