Chevron (CVX) Outspaces Stock Market Gains: What You Should Know – December 20, 2022

Chevron (CVX Quick QuoteCVX – Free Report) closed at $172.67 in the latest trading session, marking a +1.64% move from the prior day. This change outpaced the S&P 500’s 0.1% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%. Coming into today, shares of the oil company had lost 6.27% in the past month. In that same time, the Oils-Energy sector lost 6.46%, while the S&P 500 lost 3.6%. Wall Street will be looking for positivity from Chevron as it approaches its next earnings report date. In that report, analysts expect Chevron to post earnings of $4.31 per share. This would mark year-over-year growth of 68.36%. Our most recent consensus estimate is calling for quarterly revenue of $54.59 billion, up 13.43% from the year-ago period. CVX’s full-year Zacks Consensus Estimates are calling for earnings of $19.14 per share and revenue of $241.52 billion. These results would represent year-over-year changes of +135.42% and +48.66%, respectively. Investors might also notice recent changes 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 company’s business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of performance, with # 1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. Chevron is currently a Zacks Rank #3 (Hold). Digging into valuation, Chevron currently has a Forward P/E ratio of 8.87. Its industry sports an average Forward P/E of 4.43, so we one might conclude that Chevron is trading at a premium comparatively. Meanwhile, CVX’s PEG ratio is currently 0.61. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Oil and Gas – Integrated – International was holding an average PEG ratio of 0.6 at yesterday’s closing price. The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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