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

Zacks Equity Research

Chevron (CVX) closed the most recent trading day at $116.27, moving -0.33% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Heading into today, shares of the oil company had lost 2.26% over the past month, lagging the Oils-Energy sector's gain of 4.51% and the S&P 500's gain of 3.88% in that time.

Wall Street will be looking for positivity from CVX as it approaches its next earnings report date. This is expected to be January 31, 2020. On that day, CVX is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 23.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.80 billion, down 8.38% from the year-ago period.

Investors should also note any recent changes to analyst estimates for CVX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.69% higher. CVX currently has a Zacks Rank of #3 (Hold).

Digging into valuation, CVX currently has a Forward P/E ratio of 17.69. This valuation marks a premium compared to its industry's average Forward P/E of 13.59.

Also, we should mention that CVX has a PEG ratio of 4.89. 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 2.04 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 215, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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