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

Chevron (CVX) closed at $71.70 in the latest trading session, marking a +0.59% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 0.33%.

Coming into today, shares of the oil company had lost 6.58% in the past month. In that same time, the Oils-Energy sector lost 7.24%, while the S&P 500 gained 3.42%.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be October 30, 2020. In that report, analysts expect CVX to post earnings of -$0.13 per share. This would mark a year-over-year decline of 108.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.52 billion, down 29.35% from the year-ago period.

CVX's full-year Zacks Consensus Estimates are calling for earnings of -$0.16 per share and revenue of $102.44 billion. These results would represent year-over-year changes of -102.55% and -30.08%, respectively.

Any recent changes to analyst estimates for CVX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 258.16% lower within the past month. CVX is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that CVX has a Forward P/E ratio of 11880 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.69.

We can also see that CVX currently has a PEG ratio of 2376. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 5.56 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% 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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