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

Zacks Equity Research

Chevron (CVX) closed at $124.76 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.43%.

Coming into today, shares of the oil company had gained 3.57% in the past month. In that same time, the Oils-Energy sector gained 4.19%, while the S&P 500 gained 4.46%.

CVX will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2019. On that day, CVX is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 7.3%. Meanwhile, our latest consensus estimate is calling for revenue of $42.49 billion, up 0.61% from the prior-year quarter.

CVX's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $157.95 billion. These results would represent year-over-year changes of -8.48% and -5.04%, respectively.

Investors should also note any recent changes to analyst estimates for CVX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 5.87% lower within the past month. CVX is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, CVX currently has a Forward P/E ratio of 16.66. This represents a premium compared to its industry's average Forward P/E of 12.2.

We can also see that CVX currently has a PEG ratio of 3.69. 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 was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 7% 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.


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