Chevron Corporation (CVX) Hit a 52 Week High, Can the Run Continue?

Company Performance - Chevron's shares have increased by 13.1% over the past month, reaching a new 52-week high of $212.46, and have gained 38.5% since the beginning of the year, outperforming the Zacks Oils-Energy sector and the Zacks Oil and Gas - Integrated - International industry [1] - The company has consistently beaten earnings estimates, reporting an EPS of $1.52 against a consensus estimate of $1.44 in its last earnings report [2] Earnings Projections - For the current fiscal year, Chevron is expected to post earnings of $8.05 per share on revenues of $193.17 billion, reflecting a 10.43% increase in EPS and a 2.19% increase in revenues [3] - For the next fiscal year, earnings are projected to be $9.38 per share on revenues of $196.06 billion, indicating a year-over-year change of 16.55% in EPS and 1.5% in revenues [3] Valuation Metrics - Chevron's current valuation metrics show a trading multiple of 26.2X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 11.4X [7] - The stock trades at 12.6X on a trailing cash flow basis, compared to the peer group's average of 6X, and has a PEG ratio of 1.76 [7] Zacks Rank and Style Scores - Chevron holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of C, a Growth Score of D, and a Momentum Score of A, resulting in a VGM Score of B [6] Industry Comparison - The Oil and Gas - Integrated - International industry is performing well, ranking in the top 13% of all industries, providing a favorable environment for both Chevron and its peer BP p.l.c. [12] - BP p.l.c. also has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $3.53 on revenues of $246.86 billion for the current fiscal year [10][11]