Chevron (CVX) Stock Drops Despite Market Gains: Important Facts to Note

Chevron (CVX) ended the recent trading session at $165.76, demonstrating a -1.61% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Shares of the oil company have depreciated by 9.34% over the course of the past month, underperforming the Oils-Energy sector's loss of 4.84%, and the S&P 500's loss of 1.82%.

The upcoming earnings release of Chevron will be of great interest to investors. The company's earnings per share (EPS) are projected to be $5.9, reflecting a 233.33% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $58.23 billion, indicating a 29.91% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.41 per share and revenue of $220.32 billion, which would represent changes of +111.39% and +16.55%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chevron. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 2.07% lower. Chevron is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Chevron is holding a Forward P/E ratio of 10.93. This valuation marks a premium compared to its industry average Forward P/E of 7.12.

It's also important to note that CVX currently trades at a PEG ratio of 0.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 0.58.

Story Continues

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 41% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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