Commanding a solid market cap of about $286.7 billion, California-based Chevron Corporation (CVX) is a leading integrated energy and chemicals company in the oil and gas sector. The company is slated to lift the curtains on its fiscal Q2 earnings results before the market opens on Friday, Aug. 2.
Ahead of this event, analysts expect CVX to report a profit of $3.28 per share, up 6.5% from $3.08 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. The energy giant surpassed the consensus EPS estimate by 3.2% in the most recent quarter due to higher U.S. production volumes from recent acquisitions.
For fiscal 2024, analysts expect CVX to report EPS of $13.18, up marginally from $13.13 in fiscal 2023. However, in fiscal 2025, EPS is projected to jump a notable 16.6% annually to $15.37.
Over the past 52 weeks, CVX stock has declined 2.5%, falling behind the 25.6% gain of the broader S&P 500 Index ($SPX) and the 7.8% increase of the S&P 500 Energy Sector SPDR (XLE) during the same period.
Despite recent underperformance and investor skepticism surrounding its Hess acquisition, the company presents a compelling opportunity for long-term investors, given its robust financial stability and attractive dividend yield.
Moreover, the stock rose marginally on Apr. 26 after its Q1 earnings results because the company beat analysts' consensus estimates for adjusted per-share profit. The positive surprise can be attributed to higher oil and gas production volumes driven by successful strategic acquisitions. These factors helped offset concerns about weak natural gas prices and fuel margins.
Analysts' consensus rating on Chevron stock is bullish, with a "Strong Buy" rating overall. Among 20 analysts covering the stock, 14 recommend a "Strong Buy," two suggest a "Moderate Buy," and four advise a "Hold," a consensus that has remained steady over the past three months.
The average analyst price target for CVX is $182.81, indicating a potential upside of 17.5% from the current levels.
On the date of publication, Sohini Mondal 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.
