Is Chevron Stock Underperforming the Dow? | U.S. Markets

Houston, Texas-based Chevron Company (CVX) integrates vitality and chemical substances operations. Valued at $275.8 billion by market cap, the company explores, develops, produces, and transports crude oil and natural gasoline, in addition to refines, markets, and distributes fuels worldwide by way of pipelines, ships, and rail.

Corporations value $200 billion or more are usually described as “mega-cap stocks,” and CVX undoubtedly matches that description, with its market cap exceeding this threshold, reflecting its substantial dimension, affect, and dominance within the built-in oil & gasoline industry. CVX’s deal with disciplined capital allocation, investments in renewable vitality, carbon seize, and rising applied sciences exhibit its dedication to a lower-carbon future. Its numerous vitality portfolio, operational effectivity, and experience in deepwater exploration, LNG, and carbon management have enhanced its aggressive edge within the industry. 

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Regardless of its notable power, CVX slipped 6.2% from its 52-week high of $167.11, achieved on Apr. 29, 2024. Over the previous three months, CVX stock dipped 3.4%, underperforming the Dow Jones Industrials Common’s ($DOWI) 3.3% losses during the identical time body.

In the long term, shares of CVX rose 8.2% on a YTD foundation, outperforming DOWI’s YTD good points of 1.6%. Nonetheless, the stock climbed 3% over the previous 52 weeks, underperforming DOWI’s 11% returns over the past 12 months.

To verify the bullish development, CVX has been trading above its 50-day and 200-day shifting averages since early February. 

CVX’s underperformance stems from fluctuating demand, weak crude oil costs, value pressures, and regulatory restrictions on drilling. An ongoing arbitration dispute with Exxon Mobil Company (XOM) over the potential merger with Hess Company’s (HES) Guyana project threatens to delay the deal, impacting its growth prospects. Chevron has struggled with losses on account of decrease refined product margins and rising working prices, significantly in its West Coast refining operations, additional weakening its total profitability. Furthermore, Trump introduced the U.S. will revoke Chevron’s license to operate in Venezuela implying the company’s decline.

On Jan. 31, CVX shares closed down more than 4% after reporting its This fall outcomes. Its income of $52.2 billion beat analyst estimates of $47 billion. The company’s adjusted EPS was $2.06, lacking analyst estimates of $2.19. 

CVX’s rival, Exxon Mobil Company (XOM) shares lagged behind the stock, with a 2.4% gain on a YTD foundation, however has taken the lead over the stock with 5.9% returns over the previous 52 weeks.

Wall Avenue analysts are bullish on CVX’s prospects. The stock has a consensus “Strong Buy” score from the 22 analysts masking it, and the imply price goal of $176.91 suggests a potential upside of 12.9% from present price ranges.

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