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

Zacks Equity Research
·3 mins read

In the latest trading session, Chevron (CVX) closed at $72, marking a +0.14% move from the previous day. This move lagged the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 0.74%.

Prior to today's trading, shares of the oil company had lost 13.46% over the past month. This has was narrower than the Oils-Energy sector's loss of 13.84% and lagged the S&P 500's loss of 4.83% 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 -$0.07 per share, which would represent a year-over-year decline of 104.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.79 billion, down 28.59% from the year-ago period.

CVX's full-year Zacks Consensus Estimates are calling for earnings of $0.01 per share and revenue of $101.93 billion. These results would represent year-over-year changes of -99.84% and -30.43%, respectively.

It is also important to note the recent changes to analyst estimates for CVX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 93.88% lower. CVX is currently a Zacks Rank #4 (Sell).

Investors should also note CVX's current valuation metrics, including its Forward P/E ratio of 11983.33. This valuation marks a premium compared to its industry's average Forward P/E of 22.63.

Also, we should mention that CVX has a PEG ratio of 2396.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 16.41 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 232, putting it in the bottom 9% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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