Chevron (CVX) closed at $146.86 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
The stock of oil company has risen by 9.53% in the past month, leading the Oils-Energy sector's gain of 6.67% and the S&P 500's gain of 0.5%.
Analysts and investors alike will be keeping a close eye on the performance of Chevron in its upcoming earnings disclosure. In that report, analysts expect Chevron to post earnings of $1.58 per share. This would mark a year-over-year decline of 38.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $46.87 billion, indicating a 8.41% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.87 per share and a revenue of $190.14 billion, representing changes of -31.64% and -6.24%, respectively, from the prior year.
It is also important to note the recent changes to 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.8% upward. As of now, Chevron holds a Zacks Rank of #3 (Hold).
In terms of valuation, Chevron is currently trading at a Forward P/E ratio of 21.77. This signifies a premium in comparison to the average Forward P/E of 11.11 for its industry.
Meanwhile, CVX's PEG ratio is currently 2.63. 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 had an average PEG ratio of 1.89 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Chevron Corporation (CVX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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