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

Zacks Equity Research
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Chevron (CVX) closed the most recent trading day at $122.89, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Prior to today's trading, shares of the oil company had gained 3.32% over the past month. This has outpaced the Oils-Energy sector's loss of 0.37% and the S&P 500's gain of 0.52% in that time.

Investors will be hoping for strength from CVX as it approaches its next earnings release. On that day, CVX is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 25.79%. Our most recent consensus estimate is calling for quarterly revenue of $36.69 billion, down 2.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.60 per share and revenue of $153.49 billion. These totals would mark changes of -20% and -7.72%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CVX. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.86% lower. CVX currently has a Zacks Rank of #3 (Hold).

Investors should also note CVX's current valuation metrics, including its Forward P/E ratio of 18.66. For comparison, its industry has an average Forward P/E of 11.71, which means CVX is trading at a premium to the group.

It is also worth noting that CVX currently has a PEG ratio of 3.75. 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 was holding an average PEG ratio of 1.29 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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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