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Chevron (CVX) Gains But Lags Market: What You Should Know

Zacks Equity Research

Chevron (CVX) closed the most recent trading day at $118.61, moving +0.01% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.75%.

Coming into today, shares of the oil company had gained 0.92% in the past month. In that same time, the Oils-Energy sector gained 8.26%, while the S&P 500 gained 3.44%.

CVX will be looking to display strength as it nears its next earnings release. On that day, CVX is projected to report earnings of $1.74 per share, which would represent a year-over-year decline of 17.54%. Meanwhile, our latest consensus estimate is calling for revenue of $40.79 billion, down 7.28% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.76 per share and revenue of $156.62 billion, which would represent changes of -18.06% and -5.84%, respectively, from the prior year.

Any recent changes to analyst estimates for CVX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

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 3.1% lower. CVX is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CVX is holding a Forward P/E ratio of 17.54. Its industry sports an average Forward P/E of 12.42, so we one might conclude that CVX is trading at a premium comparatively.

We can also see that CVX currently has a PEG ratio of 2.92. 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 1.55 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 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.

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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