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Strength Seen in Chevron (CVX): Can Its 6.7% Jump Turn into More Strength?
Chevron (CVX - Free Report) shares rallied 6.7% in the last trading session to close at $146.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.1% loss over the past four weeks.
Chevron experienced a positive shift in its stock price due to the surge in oil prices, which helped enhance its upstream operations and profitability. The broader rally was further supported by President Trump’s announcement to pause "reciprocal" tariff hikes and implement a reduced 10% tariff rate for most countries over the next 90 days. The combination of higher oil and natural gas and reduced trade uncertainties lifted Chevron’s stock as investors became more confident in the company’s future earnings. The reduction in trade uncertainty contributed to improved sentiment in Chevron’s stock price.
This oil company is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of -15%. Revenues are expected to be $47.52 billion, down 2.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Chevron, the consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CVX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Chevron is a member of the Zacks Oil and Gas - Integrated - International industry. One other stock in the same industry, Petrobras (PBR - Free Report) , finished the last trading session 6.5% higher at $12.21. PBR has returned -9.1% over the past month.
Petrobras' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.07. Compared to the company's year-ago EPS, this represents a change of +42.7%. Petrobras currently boasts a Zacks Rank of #3 (Hold).