Chevron (CVX) Offering Possible 19.33% Return Over the Next 8 Calendar Days

Chevron's most recent trend suggests a bullish bias. One trading opportunity on Chevron is a Bull Put Spread using a strike $110.00 short put and a strike $105.00 long put offers a potential 19.33% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $110.00 by expiration. The full premium credit of $0.81 would be kept by the premium seller. The risk of $4.19 would be incurred if the stock dropped below the $105.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Chevron is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Chevron is bullish.

The RSI indicator is at 48.82 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Chevron

Oil & Gas Stock Roundup: Elliott's QEP Bid, Transocean's Contract Win & More
Tue, 08 Jan 2019 20:44:08 +0000
Elliott Management proposed buying QEP Resources (QEP) for about $2 billion, while Transocean (RIG) announced a five-year contract award for an ultra-deepwater drillship by Chevron (CVX).

ExxonMobil Ranks Second with 33% Estimated Earnings Growth in Q4
Tue, 08 Jan 2019 18:25:02 +0000
XOM, CVX, Shell, and BP: How Will Their Q4 Earnings Shake Out?

(Continued from Prior Part)

## Ranking series

In this series, we’re ranking four integrated energy companies based on their estimated YoY (year-over-year) earnings growth. ExxonMobil (XOM) occupies the second-place spot.

In the previous article, we reviewed Chevron (CVX), which is expected to post a 183% YoY rise in EPS in the fourth quarter.

In the third quarter of 2018, ExxonMobil’s earnings surpassed Wall Street analysts’ earnings estimates. Its earnings also rose from $3.97 billion in the third quarter of 2017 to $6.24 billion in the third quarter due to higher YoY upstream and downstream earnings partly offset by lower chemical earnings in the period.

## ExxonMobil’s fourth-quarter estimates

Wall Street analysts expect ExxonMobil to post EPS of $1.2 in the fourth quarter, 33% higher than its adjusted EPS in the fourth quarter of 2017 but 20% lower than its adjusted EPS in the third quarter of 2018. Also, ExxonMobil’s revenue is expected to be ~$81.7 billion in the quarter, ~23% higher than its revenue in the fourth quarter of 2017.

Better oil prices could result in higher upstream earnings for the company in the fourth quarter. Brent crude oil’s price fell from $61 per barrel in the fourth quarter of 2017 to $69 per barrel in the fourth quarter of 2018. Its downstream earnings could be lower due to the fall in refining cracks in the industry. The US Gulf Coast WTI 3-2-1, the benchmark crack, fell 19% YoY in the quarter.

Move on to the next article for a look at the next stock on the list, BP (BP).

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – XOM, CVX, Shell, and BP: How Will Their Q4 Earnings Shake Out?
* Part 2 – Chevron to Post the Highest Earnings Growth in Q4
* Part 4 – BP Ranks Third in Terms of Its Q4 Growth Forecast

Chevron to Post the Highest Earnings Growth in Q4
Tue, 08 Jan 2019 16:55:02 +0000
In this series, we’re ranking global integrated energy companies ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) based on their estimated YoY (year-over-year) earnings growth in the fourth quarter. 

XOM, CVX, Shell, and BP: How Will Their Q4 Earnings Shake Out?
Tue, 08 Jan 2019 15:22:45 +0000
XOM, CVX, Shell, and BP: How Will Their Q4 Earnings Shake Out?

## Integrated energy companies’ fourth-quarter estimates

In this series, we’ll rank integrated energy companies according to their estimated YoY (year-over-year) EPS growth in the fourth quarter of 2018. 

The four integrated energy stocks under consideration are ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP).

If we rank these stocks according to their expected YoY growth in EPS in the fourth quarter, then Chevron occupies the top spot. Chevron is expected to post a massive ~183% YoY rise in its earnings in the fourth quarter. In contrast, Shell occupies the last spot despite the fact that it’s expected to post a 21% YoY rise in EPS in the quarter. ExxonMobil and BP rank second and third, respectively, in terms of the expected rises in their earnings in the quarter.

Three of the four above-mentioned companies are expecting less than 40% YoY growth in earnings in the fourth quarter mainly due to the likely marginal rises in their upstream earnings partly offset by the anticipated falls in their downstream earnings. Oil prices have been higher YoY on a quarterly average basis, but refining cracks have shown weakness, which we’ll discuss in the next few articles.

## Valuations

If we consider the valuations of these companies, ExxonMobil, which is expected to achieve the second-highest earnings growth, stands the highest at a forward PE of 13.9x. ExxonMobil is a fundamentally strong company with low debt and a solid liquidity position. Comparatively, Shell, which is last in terms of earnings growth expectations, has the lowest forward PE at 10.2x. Shell’s debt position has improved, but the company is expected to have relatively low earnings growth in 2018.

BP’s and Chevron’s valuations stand at 11.0x and 13.5x, respectively. BP’s lower valuation is mainly the result of its relatively high debt (total debt-to-total capital ratio). Contrarily, Chevron has the second-best debt position in the industry.

From the next article onward, we’ll look at individual companies’ fourth-quarter estimated earnings, starting with Chevron.

Continue to Next Part

Browse this series on Market Realist:

* Part 2 – Chevron to Post the Highest Earnings Growth in Q4
* Part 3 – ExxonMobil Ranks Second with 33% Estimated Earnings Growth in Q4
* Part 4 – BP Ranks Third in Terms of Its Q4 Growth Forecast

Dogs of the Dow Win in 2018: Will ETFs See Success in 2019?
Tue, 08 Jan 2019 13:00:01 +0000
Dogs of the Dow beat the broader market in 2018. Will Dogs ETFs be able to taste success this year too?

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