Zacks Equity Research
3 min read
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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.
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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.
