Chevron Corporation (CVX) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Chevron (CVX)? Shares have been on the move with the stock up 13.1% over the past month. The stock hit a new 52-week high of $212.46 in the previous session. Chevron has gained 38.5% since the start of the year compared to the 34.3% gain for the Zacks Oils-Energy sector and the 40.3% return for the Zacks Oil and Gas - Integrated - International industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 30, 2026, Chevron reported EPS of $1.52 versus consensus estimate of $1.44 while it missed the consensus revenue estimate by 8.87%.

For the current fiscal year, Chevron is expected to post earnings of $8.05 per share on $193.17 in revenues. This represents a 10.43% change in EPS on a 2.19% change in revenues. For the next fiscal year, the company is expected to earn $9.38 per share on $196.06 in revenues. This represents a year-over-year change of 16.55% and 1.5%, respectively.

Valuation Metrics

While Chevron has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Chevron has a Value Score of C. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 26.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.4X. On a trailing cash flow basis, the stock currently trades at 12.6X versus its peer group's average of 6X. Additionally, the stock has a PEG ratio of 1.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Chevron currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Chevron meets the list of requirements. Thus, it seems as though Chevron shares could have a bit more room to run in the near term.

How Does CVX Stack Up to the Competition?

Shares of CVX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BP p.l.c. (BP). BP has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. BP p.l.c. beat our consensus estimate by 5.26%, and for the current fiscal year, BP is expected to post earnings of $3.53 per share on revenue of $246.86 billion.

Shares of BP p.l.c. have gained 20.1% over the past month, and currently trade at a forward P/E of 13.22X and a P/CF of 4.81X.

The Oil and Gas - Integrated - International industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVX and BP, even beyond their own solid fundamental situation.

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

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