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

Zacks Equity Research

Chevron (CVX) closed at $91.23 in the latest trading session, marking a -1.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 1.43%.

Wall Street will be looking for positivity from CVX as it approaches its next earnings report date. The company is expected to report EPS of -$0.67, down 129.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.70 billion, down 49.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $108.75 billion. These totals would mark changes of -96.33% and -25.78%, respectively, from last year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 159.07% higher. CVX is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CVX is holding a Forward P/E ratio of 405.22. This represents a premium compared to its industry's average Forward P/E of 27.

We can also see that CVX currently has a PEG ratio of 81.04. 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. CVX's industry had an average PEG ratio of 15.74 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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