The Case for and Against Chevron Corporation (CVX)

Chevron Corporation (CVX) is an interesting player in the Basic Materials space, with a focus on Major Integrated Oil & Gas. The stock has been active on the tape, currently trading at $127.07, down from yesterday’s close by -0.01%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Chevron Corporation (CVX) currently trades with a market capitalization of $236.95 Billion. That value represents a market adjusting for revenues that have been growing by 14.72 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $8.64 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $2 on a per share basis this quarter. Perhaps, that suggests something about why 0.05% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Chevron Corporation recorded a 52-week high of $133.88. It is now trading 6.81% off that level. The stock is trading $124.35 its 50-day moving average by -2.72%. The stock carved out a 52-week low down at $102.55.

In recent action, Chevron Corporation (CVX) has made a move of -2.06% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.21% with $1.86 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CVX.

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