Chevron Corporation (CVX:NYE) Analysts rate as a Buy rating, $164 target

STA Research
by: STA Research

Based on the Chevron Corporation stock forecasts from 17 analysts, the average analyst target price for Chevron Corporation is USD 164.55 over the next 12 months. Chevron Corporation’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Chevron Corporation is Slightly Bullish, which is based on 8 positive signals and 6 negative signals. At the last closing, Chevron Corporation’s stock price was USD 174.66. Chevron Corporation’s stock price has changed by +2.02% over the past week, +17.99% over the past month and +63.77% over the last year.

Barclays Capital just recently maintained the Overweight rating on the stock, and raised the target to $196 from $183.

Chevron Corporation operates integrated energy and chemical operations around the world through its subsidiaries. Upstream and downstream are the two segments in which the company operates. ChevronTexaco Corporation was the company’s previous name until 2005, when it was renamed Chevron Corporation. Chevron Corporation is situated in San Ramon, California, and was founded in 1879.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

 

 

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