Chevron (CVX) closed at $151.41 in the latest trading session, marking a +1.97% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.68%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 0.33%.
Coming into today, shares of the oil company had lost 4.96% in the past month. In that same time, the Oils-Energy sector gained 0.84%, while the S&P 500 gained 1.8%.
The upcoming earnings release of Chevron will be of great interest to investors. It is anticipated that the company will report an EPS of $1.61, marking a 21.84% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $53.61 billion, up 2.65% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.47 per share and revenue of $191.73 billion. These totals would mark changes of -25.67% and -5.45%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Chevron. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.38% higher. At present, Chevron boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Chevron has a Forward P/E ratio of 19.89 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.95.
Investors should also note that CVX has a PEG ratio of 8.76 right now. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.65.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 42% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chevron Corporation (CVX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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