Why the Market Dipped But Chevron (CVX) Gained Today

In the latest close session, Chevron (CVX) was up +1.42% at $201.44. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the oil company had gained 8.02% in the past month. In that same time, the Oils-Energy sector gained 8.87%, while the S&P 500 lost 3.59%.

Market participants will be closely following the financial results of Chevron in its upcoming release. The company's upcoming EPS is projected at $1.69, signifying a 22.48% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $46.92 billion, showing a 1.45% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.25 per share and a revenue of $188.58 billion, indicating changes of -0.55% and -0.24%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Chevron. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.85% higher within the past month. Chevron is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Chevron is currently trading at a Forward P/E ratio of 27.41. For comparison, its industry has an average Forward P/E of 12.04, which means Chevron is trading at a premium to the group.

Meanwhile, CVX's PEG ratio is currently 1.84. 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 was holding an average PEG ratio of 1.14 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 52, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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