Chevron (CVX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Chevron (CVX) closed at $122.28, marking a +0.66% move from the previous day. This change outpaced the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.05%.
Coming into today, shares of the oil company had gained 0.24% in the past month. In that same time, the Oils-Energy sector lost 1.5%, while the S&P 500 lost 0.08%.
CVX will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVX to post earnings of $2.04 per share. This would mark year-over-year growth of 14.61%. Meanwhile, our latest consensus estimate is calling for revenue of $42.75 billion, up 1.22% from the prior-year quarter.
CVX's full-year Zacks Consensus Estimates are calling for earnings of $7.94 per share and revenue of $160.65 billion. These results would represent year-over-year changes of -3.76% and -3.42%, respectively.
Any recent changes to analyst estimates for CVX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 8.88% higher. CVX is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, CVX is currently trading at a Forward P/E ratio of 15.29. Its industry sports an average Forward P/E of 11.35, so we one might conclude that CVX is trading at a premium comparatively.
Also, we should mention that CVX has a PEG ratio of 2.45. 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 1.74 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 70, which puts it in the top 28% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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