Chevron (CVX) closed the most recent trading day at $113.65, moving +0.04% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the oil company had gained 1.51% over the past month, outpacing the Oils-Energy sector’s loss of 4.84% and the S&P 500’s loss of 1.37% in that time.
Investors will be hoping for strength from Chevron as it approaches its next earnings release. In that report, analysts expect Chevron to post earnings of $2.99 per share. This would mark year-over-year growth of 30000%. Our most recent consensus estimate is calling for quarterly revenue of $43.6 billion, up 72.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.42 per share and revenue of $155.81 billion. These totals would mark changes of +4310% and +64.54%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.8% higher within the past month. Chevron is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Chevron currently has a Forward P/E ratio of 13.5. This valuation marks a premium compared to its industry’s average Forward P/E of 7.67.
Also, we should mention that CVX has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Oil and Gas – Integrated – International stocks are, on average, holding a PEG ratio of 0.69 based on yesterday’s closing prices.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.