Chevron (CVX) closed the most recent trading day at $186.29, moving -1.66% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.21%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the oil company had gained 3.75% lagged the Oils-Energy sector's gain of 6.06% and outpaced the S&P 500's loss of 2.26%.
Market participants will be closely following the financial results of Chevron in its upcoming release. The company is expected to report EPS of $1.53, down 29.82% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $46.92 billion, indicating a 1.45% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.66 per share and a revenue of $188.58 billion, signifying shifts of -8.64% and -0.24%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Chevron. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.66% rise in the Zacks Consensus EPS estimate. Right now, Chevron possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Chevron is holding a Forward P/E ratio of 28.44. This signifies a premium in comparison to the average Forward P/E of 12.72 for its industry.
Also, we should mention that CVX has a PEG ratio of 1.91. 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. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.55.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Chevron Corporation (CVX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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