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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 $118.48, moving -0.16% from the previous trading session. This change lagged the S&P 500's 0.56% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.01%.

Heading into today, shares of the oil company had lost 1.24% over the past month, lagging the Oils-Energy sector's gain of 0.2% and the S&P 500's gain of 1.38% in that time.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be November 1, 2019. The company is expected to report EPS of $1.51, down 28.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $39.38 billion, down 10.47% from the year-ago period.

CVX's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $153.53 billion. These results would represent year-over-year changes of -25.33% and -7.7%, respectively.

Investors might also notice 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. 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, 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 8.9% lower. CVX is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, CVX currently has a Forward P/E ratio of 19.26. This represents a premium compared to its industry's average Forward P/E of 13.72.

Also, we should mention that CVX has a PEG ratio of 3.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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.

To follow CVX in the coming trading sessions, be sure to utilize Zacks.com.


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