San Ramon, California-based Chevron Corporation (CVX) is a fully integrated oil & gas company that participates in oil and gas production, refining, and marketing. With a market cap of $281.3 billion, the company's operations span various countries around the globe.
The oil & gas giant has substantially underperformed over the past year. CVX stock is down nearly 6% over the past 52 weeks, while the S&P 500 Index ($SPX) has gained nearly 19% over the same time frame. In 2024, shares of Chevron are up 2.3% compared to SPX’s 14.2% gains on a YTD basis.
Zooming in further, Chevron has also lagged behind the Nasdaq Oil & Gas ETF’s (FTXN) 5.5% gains over the past 52 weeks and 7.8% returns on a YTD basis.
CVX stock fell by 4.9% on Aug. 1, its largest decline since October, due to new arbitration claims from Exxon Mobil Corporation (XOM) and CNOOC Ltd challenging Chevron’s $53 billion merger with Hess Corporation (HES). This added uncertainty around the deal was crucial for Chevron’s stake in a Guyana oil joint venture, which has unsettled investors.
For the current fiscal year, ending in December, analysts expect Chevron to report an EPS decline of 5.2% year over year to $12.45 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the past four quarters while missing the projections on another occasion.
Among the 20 analysts covering the CVX stock, the consensus rating is “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is less bullish than a month ago when 14 analysts recommended a “Strong Buy.”
On Jul. 17, Bernstein analyst Bob Brackett downgraded CVX to “Market Perform” with a price target of $167.
Chevron's mean price target of $180.38 suggests a potential upside of 18.2% from current price levels. The Street-high price target of $206 implies a potential upside of around 35% from the current price levels.
On the date of publication, Aditya Sarawgi 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.
