Unlike most oil and gas stocks, Chevron (CVX) has appreciated nicely on the year, and the stock is currently trading just shy of its 52-week high, and not far below its record high. Earnings growth this year is forecast to be 318%, and next year analysts see earnings rising by 23.9%. The current growth estimates are impressive, and could be greatly understated if oil prices are able to extend recent gains on news of more OPEC cuts. The stock’s valuation is a bit of a concern, with a P/E of 38.6, but given the robust growth estimates the valuation on its own will not be enough to derail this stock. CVX trades at $119.22, which is pretty much in-line with the stock’s $119.50 average price target, but if the company is able to post positive earnings numbers on October 27 analysts will likely increase their targets to allow the stock to move higher.
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