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Chevron (CVX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Chevron (CVX) closed at $89.23 in the latest trading session, marking a +1.78% move from the prior day. This move outpaced the S&P 500's daily gain of 1.54%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.87%.

Heading into today, shares of the oil company had lost 5.52% over the past month, lagging the Oils-Energy sector's loss of 0.57% and the S&P 500's gain of 0.57% in that time.

Wall Street will be looking for positivity from CVX as it approaches its next earnings report date. On that day, CVX is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 71.81%. Our most recent consensus estimate is calling for quarterly revenue of $19.70 billion, down 49.3% from the year-ago period.

CVX's full-year Zacks Consensus Estimates are calling for earnings of $0.27 per share and revenue of $108.75 billion. These results would represent year-over-year changes of -95.69% and -25.78%, respectively.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 943.75% higher. CVX is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, CVX currently has a Forward P/E ratio of 324.7. For comparison, its industry has an average Forward P/E of 27.78, which means CVX is trading at a premium to the group.

Also, we should mention that CVX has a PEG ratio of 64.94. 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 was holding an average PEG ratio of 15.39 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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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