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

Zacks Equity Research

In the latest trading session, Chevron (CVX) closed at $119.04, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Coming into today, shares of the oil company had gained 2.81% in the past month. In that same time, the Oils-Energy sector gained 7.72%, while the S&P 500 gained 3.31%.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be January 31, 2020. In that report, analysts expect CVX to post earnings of $1.57 per share. This would mark a year-over-year decline of 23.79%. Meanwhile, our latest consensus estimate is calling for revenue of $38.27 billion, down 9.64% from the prior-year quarter.

Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 2.88% higher. CVX is currently a Zacks Rank #3 (Hold).

Digging into valuation, CVX currently has a Forward P/E ratio of 18.48. For comparison, its industry has an average Forward P/E of 14.91, which means CVX is trading at a premium to the group.

Also, we should mention that CVX has a PEG ratio of 3.08. 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. CVX's industry had an average PEG ratio of 2.11 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 199, putting it in the bottom 22% 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.

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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