Chevron (CVX) Gains As Market Dips: What You Should Know

In the latest trading session, Chevron (CVX) closed at $115.94, marking a +0.28% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.39%.

Coming into today, shares of the oil company had lost 0.09% in the past month. In that same time, the Oils-Energy sector lost 5.66%, while the S&P 500 lost 2.56%.

Investors will be hoping for strength from CVX as it approaches its next earnings release, which is expected to be February 1, 2019. In that report, analysts expect CVX to post earnings of $2.29 per share. This would mark year-over-year growth of 213.7%. Meanwhile, our latest consensus estimate is calling for revenue of $42.52 billion, up 13.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.01 per share and revenue of $166.51 billion, which would represent changes of +116.49% and +17.49%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CVX. Recent revisions tend to reflect the latest 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.42% lower within the past month. CVX currently has a Zacks Rank of #3 (Hold).

Investors should also note CVX's current valuation metrics, including its Forward P/E ratio of 14.43. Its industry sports an average Forward P/E of 10, so we one might conclude that CVX is trading at a premium comparatively.

It is also worth noting that CVX currently has a PEG ratio of 2.06. 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. CVX's industry had an average PEG ratio of 1.05 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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