Chevron Shows Moderate Gains Amid Market Surge

Company Overview and Yearly Performance

Chevron Corporation (CVX) is based in San Ramon, California, and operates in the energy and chemicals sectors. With a market cap of $280.6 billion, Chevron is involved in producing and transporting crude oil and natural gas, and it also refines and distributes fuels globally.

Yearly Stock Insights

Over the last year, Chevron’s shares have lagged behind the overall market. While CVX has risen 7.3%, the broader S&P 500 Index ($SPX) has surged nearly 35.8%. Year-to-date (YTD) figures show CVX up 5.7%, in contrast to the SPX’s impressive 24.3% increase.

Comparative Analysis

When compared to the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), Chevron’s performance is notably strong. The ETF has actually decreased by about 2.6% over the past year, whereas Chevron’s YTD returns exceed the ETF’s 2.2% gains in the same period.

Recent Financial Results

On November 1, Chevron’s stock closed up more than 2% following the release of its Q3 results. The company reported an adjusted EPS of $2.51, surpassing analyst expectations of $2.47. Chevron’s revenue for the quarter reached $50.7 billion, outpacing forecasts of $49.9 billion. Additionally, the company aims to complete asset sales in Canada, Congo, and Alaska in the fourth quarter, as part of a broader strategy to divest $10 to $15 billion in assets by 2028.

Future Earnings Expectations

For the current fiscal year ending in December, analysts predict an earnings per share (EPS) decline of 19.4% to $10.59 on a diluted basis. Chevron’s past performance in meeting earnings expectations has been mixed; it exceeded estimates in three of the last four quarters but fell short in one instance.

Analyst Ratings

Among the 22 analysts covering Chevron, the consensus rating is a “Moderate Buy.” This includes 14 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.” This outlook has improved compared to the previous month, where only 12 analysts rated it as a “Strong Buy.”

Price Targets and Analyst Insights

On November 6, DBS analyst Suvro Sarkar maintained a “Buy” rating for Chevron with a price target of $182, suggesting a potential upside of 15.4% from current levels. The average price target stands at $168.81, indicating a 7% premium over Chevron’s current price. Notably, a Street-high price target of $192 suggests an ambitious upside potential of 21.7%.

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On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.