In the latest trading session, Chevron (CVX – Free Report) closed at $158.72, marking a +1.08% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.31%.
The the stock of oil company has risen by 1.08% in the past month, leading the Oils-Energy sector’s loss of 3.15% and the S&P 500’s loss of 7.69%.
Market participants will be closely following the financial results of Chevron in its upcoming release. The company is forecasted to report an EPS of $2.53, showcasing a 13.65% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $47.45 billion, down 2.59% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.79 per share and a revenue of $197.99 billion, demonstrating changes of +7.36% and -2.37%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Chevron. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. Chevron is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Chevron is currently exchanging hands at a Forward P/E ratio of 14.56. Its industry sports an average Forward P/E of 7.97, so one might conclude that Chevron is trading at a premium comparatively.
We can also see that CVX currently has a PEG ratio of 1.44. 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 was holding an average PEG ratio of 1.08 at yesterday’s closing price.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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