Chevron Corporation (CVX), headquartered in San Ramon, California, integrates energy and chemicals operations. With a market cap of $280.6 billion, the company produces and transports crude oil and natural gas, as well as refines, markets, and distributes fuels worldwide.
Shares of this oil giant have underperformed the broader market considerably over the past year. CVX has gained 7.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.8%. In 2024, CVX stock is up 5.7%, compared to the SPX’s 24.3% rise on a YTD basis.
Narrowing the focus, CVX’s outperformance is apparent compared to the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The exchange-traded fund has declined about 2.6% over the past year. Moreover, CVX’s gains on a YTD basis outshine the ETF’s 2.2% returns over the same time frame.
On Nov. 1, CVX shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $2.51 topped Wall Street expectations of $2.47. The company’s revenue was $50.7 billion, exceeding Wall Street forecasts of $49.9 billion. Moreover, the company expects to close asset sales in Canada, Congo and Alaska in Q4, as part of its plan to divest $10 billion to 15 billion of MORE assets by 2028.
For the current fiscal year, ending in December, analysts expect CVX’s EPS to decline 19.4% to $10.59 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 22 analysts covering CVX stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is more bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On Nov. 6, DBS analyst Suvro Sarkar maintained a “Buy” rating on CVX and retained the price target of $182, implying a potential upside of 15.4% from current levels.
The mean price target of $168.81 represents a 7% premium to CVX’s current price levels. The Street-high price target of $192 suggests an ambitious upside potential of 21.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
