The latest job cuts in the oil patch are coming from Chevron–the company confirmed it plans to eliminate 130 Canadian positions. Jameson Berkow reports.
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Oil and gas company Chevron Corp. (CVX-N) has watched its StockReports+ score rise to 5 this week, up from 4. The recent change in its average scrore was primarily due to an improvement in its price momentum score. Most analysts have a hold recommendation on the stock. The stock's one-year return is -23.8 per cent, and its five-year return is 7.1 per cent.
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Earnings -- Rating: 3
The outlook is negative with recent analyst downgrades. Chevron's rating is just a bit lower than the oil and gas group average rating of 4.4. More analysts have downgraded their earnings outlook for the company. In the past 90 days, the analyst consensus estimate for Chevron's earnings has fallen 23.8 per cent to 80 cents (U.S.) from $1.04. The consensus price has dropped to $93.40 from $112.
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Fundamental -- Rating: 7
Chevron's rating of 7 is higher than the oil and gas group at 4.6. However, it has fallen in the last quarter to 7 from 9. The company's gross margins and interest coverage have been higher than its industry average for the past five years. Of the 46 firms in the oil and gas refining and marketing industry, Chevron is among the 42 that pay a dividend. Its dividend yield is 4.8 per cent.
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Relative valuation -- Rating: 4
Chevron's rating of 4 is lower than the oil and gas grouip at 5.8. The outlook is neutral as its multiples are relatively in-line with the market. The company's trailing price-to-earning ratio and its forward price-to-earning ratio are currently at or near their five-year highs. Based on trailing price-to-earnings, Chevron trades at a 37-per-cent discount to its peers. Based on forward price-to-earnings it trades at a 34-per-cent premium.
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Risk -- Rating: 8
The outlook is positive as the company has consistent return patterns and relatively low volatility. Chrevron's rating of 8 is much higher than its peers at 3.5. However, over the last 90 days Chevron's shares have been more volatile than the overall market.
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Price momentum - Rating: 5
The outlook is neutral and the performance is relatively in-line with the market. Chevron's rating of 5 is above its peer group at 3.6. On Thursday, Chevron close at $89.91 (U.S.), 25.2 per cent below its 52-week high and 29.2 per cent above its 52-week low. Chevron's shares are trading 12.2 per cent above their 50-day moving average of $80.11, and 8.4 per cent below their 200-day moving average of $98.11.
StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Chevron is 5 out of 10.
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