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

Zacks Equity Research

Chevron (CVX) closed the most recent trading day at $91.44, moving -0.16% from the previous trading session. This change lagged the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 0.75%.

CVX will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVX to post earnings of -$0.67 per share. This would mark a year-over-year decline of 129.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.70 billion, down 49.3% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.27 per share and revenue of $108.75 billion. These totals would mark changes of -95.69% and -25.78%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CVX. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 943.75% higher within the past month. CVX is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, CVX is holding a Forward P/E ratio of 339.22. Its industry sports an average Forward P/E of 26.36, so we one might conclude that CVX is trading at a premium comparatively.

Also, we should mention that CVX has a PEG ratio of 67.84. 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 15.78 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 68, putting it in the top 27% 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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