Chevron (CVX) Gains But Lags Market: What You Should Know
Chevron (CVX) closed the most recent trading day at $112.12, moving +0.36% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.07%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 1.71%.
Heading into today, shares of the oil company had lost 0.65% over the past month, lagging the Oils-Energy sector's gain of 2.03% and the S&P 500's loss of 0.58% 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 February 1, 2019. On that day, CVX is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 176.71%. Our most recent consensus estimate is calling for quarterly revenue of $41.70 billion, up 10.85% from the year-ago period.
Any recent changes to analyst estimates for CVX should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 6.41% lower. CVX is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, CVX is currently trading at a Forward P/E ratio of 14.89. Its industry sports an average Forward P/E of 9.95, so we one might conclude that CVX is trading at a premium comparatively.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 251, which puts it in the bottom 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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