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Why Chevron (CVX) Outpaced the Stock Market Today

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Chevron (CVX - Free Report) ended the recent trading session at $156.74, demonstrating a +0.42% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.35%.

Coming into today, shares of the oil company had lost 5.87% in the past month. In that same time, the Oils-Energy sector lost 3.91%, while the S&P 500 gained 3.25%.

The upcoming earnings release of Chevron will be of great interest to investors. The company's upcoming EPS is projected at $3.51, signifying a 13.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $52.66 billion, indicating a 7.69% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.45 per share and revenue of $206.42 billion, indicating changes of +2.44% and +2.72%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Chevron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.89% fall in the Zacks Consensus EPS estimate. As of now, Chevron holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Chevron is currently exchanging hands at a Forward P/E ratio of 11.61. This denotes a premium relative to the industry's average Forward P/E of 7.05.

Meanwhile, CVX's PEG ratio is currently 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.79.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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