Bear of the Day: Chevron (CVX)

Chevron Corp. CVX is waiting for a turnaround in oil prices. This Zacks Rank #5 (Strong Sell) is expected to see declining earnings for the second year in a row in 2025.

Chevron is one of the world’s largest integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies to enhance the business.

Chevron Beat on Earnings in the Third Quarter

On Oct 31, 2025, Chevron reported its third quarter 2025 results. It beat on the Zacks Consensus by $0.19, reporting $1.85 versus the consensus of $1.66. It was the third beat in a row.

Chevron saw record production of 4.1 million BOE per day which was 21% higher than a year ago.

Chevron Hosts an Investor Day

On Nov 12, 2025, Chevron hosted an Investor Day to outline its five-year plan to 2030 on issues like cash flow growth, advance power solutions for AI data centers and how it will grow shareholder distributions.

Chevron expects to maintain a capex and dividend breakeven below $50 Brent per barrel through 2030.

The company recently acquired Hess. It intends to increase Hess synergies to $1.5 billion and structural cost reductions to $3 billion to $4 billion by the end of 2026.

It intends to grow oil and gas production 2% to 3% annually through 2030.

Chevron will also deliver its first AI data center power project in West Texas, targeting first power in 2027.

Analysts Adjust Chevron’s Earnings Estimates

It’s been a two-year struggle for Chevron as oil prices have fallen to under $70 a barrel for Brent and under $60 a barrel for WTI.

Chevron’s earnings fell 23.8% in 2024 and are expected to fall 27.2% in 2025.

However, in 2026, the analysts believe the worst will be over as they see a rebound of 10.2%.

Why Is Chevron a Strong Sell Stock?

The Zacks Rank is based on changes to analyst earnings estimates. For 2025, 7 estimates have been cut in the last 60 days. It has pushed the Zacks Consensus down to $7.32 from $7.91.

Similarly, for 2026, 7 analysts have cut estimates in the last 60 days as well. It has pushed down the Zacks Consensus to $8.07 from $9.52.

However, in the last month, some analysts have adjusted estimates again with 4 higher for 2025 and 1 higher for 2026. But it’s not enough to counter the bearish take over the prior 2 months.

Here’s what it looks like on the price and consensus chart.

Chevron Shares Tread Water

Chevron is underperforming the S&P 500 this year, but it remains in a narrow trading range for the last 3 years.

Due to falling earnings, Chevron isn’t cheap. It trades with a forward price-to-earnings (P/E) ratio of 20.5.

But Chevron is dedicated to its shareholders. It’s paying a dividend of $6.84 per share, which is yielding an attractive 4.6%.

Chevron’s earnings are determined by commodity prices. It is a cyclical stock. When oil prices rise again, so will Chevron’s earnings. In the meantime, investors will be rewarded with a hefty dividend.

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This article originally published on Zacks Investment Research (zacks.com).

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