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Chevron (CVX) Stock Falls Amid Market Uptick: What Investors Need to Know

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Chevron (CVX - Free Report) ended the recent trading session at $148.75, demonstrating a -1.57% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.

Prior to today's trading, shares of the oil company had gained 7.71% over the past month. This has outpaced the Oils-Energy sector's loss of 1.76% and the S&P 500's gain of 5.41% in that time.

The investment community will be closely monitoring the performance of Chevron in its forthcoming earnings report. The company is scheduled to release its earnings on November 1, 2024. The company's upcoming EPS is projected at $2.80, signifying an 8.2% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $51.61 billion, down 4.57% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.09 per share and a revenue of $201.26 billion, signifying shifts of -15.54% and +0.16%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chevron. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 6.44% lower. Chevron currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Chevron is presently trading at a Forward P/E ratio of 13.63. This valuation marks a premium compared to its industry's average Forward P/E of 8.24.

One should further note that CVX currently holds a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.62.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 232, placing it within the bottom 8% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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