The latest trading session saw Chevron (CVX) ending at $143.35, denoting a +1.84% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.
Heading into today, shares of the oil company had lost 0.61% over the past month, lagging the Oils-Energy sector's gain of 3% and the S&P 500's gain of 6.29% in that time.
The investment community will be paying close attention to the earnings performance of Chevron in its upcoming release. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 38.04% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $46.98 billion, down 8.21% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.87 per share and revenue of $190.14 billion. These totals would mark changes of -31.64% and -6.24%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Chevron. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.91% decrease. Chevron is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Chevron is presently being traded at a Forward P/E ratio of 20.49. This represents a premium compared to its industry's average Forward P/E of 10.33.
Investors should also note that CVX has a PEG ratio of 2.47 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 232, placing it within the bottom 6% 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.
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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