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

Zacks Equity Research
·3-min read

Chevron (CVX) closed at $90.90 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, added 0.69%.

Prior to today's trading, shares of the oil company had gained 7.5% over the past month. This has lagged the Oils-Energy sector's gain of 9.81% and outpaced the S&P 500's gain of 4.27% in that time.

Wall Street will be looking for positivity from CVX as it approaches its next earnings report date. This is expected to be January 29, 2021. The company is expected to report EPS of $0.09, down 93.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.64 billion, down 23.97% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CVX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 13.22% higher within the past month. CVX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CVX is holding a Forward P/E ratio of 26.17. This valuation marks a premium compared to its industry's average Forward P/E of 19.22.

We can also see that CVX currently has a PEG ratio of 5.23. 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. CVX's industry had an average PEG ratio of 3.14 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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