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Integrated Energy Stocks’ Returns in 3Q17: Here Are the Top 10

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Part 5
Integrated Energy Stocks’ Returns in 3Q17: Here Are the Top 10 PART 5 OF 11

Chevron’s Stock Returns in 3Q17: Its 50-DMA Is Rising

Chevron’s stock performance in 3Q17

In terms of stock price appreciation, Chevron (CVX) stock ranks fourth among the top ten integrated energy stocks. Chevron stock marks the beginning of the middle tier in our top ten integrated energy stocks. The other stocks in the middle tier are Total (TOT) and Royal Dutch Shell (RDS.A). Let’s look at the performance of Chevron stock in 3Q17.

Chevron stock has risen 10.4% since July 3, 2017, outperforming the broad market indicator, the SPDR Dow Jones Industrial Average ETF Trust (DIA). DIA has risen 4.7% in the same period. TOT and Shell have returned 8.5% and 8.0%, respectively, in 3Q17.

Chevron’s Stock Returns in 3Q17: Its 50-DMA Is Rising

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Chevron’s moving averages

In 3Q17, Chevron’s 50-day moving average (or 50-DMA) stood below its 200-day moving average (or 200-DMA). However, the steep rise in Chevron stock has led to a rise in its 50-DMA. CVX’s 50-DMA stood 2.7% below its 200-DMA on July 3, 2017, and it currently stands 1.3% below its 200-DMA.

If this trend continues, CVX’s 50-DMA could soon cross over its 200-DMA—a bullish technical sign—which could lead to an acceleration in the rise of its stock price.

Why Chevron stock rose

Chevron stock’s correlation coefficient versus WTI for the past one-year period stood at 0.49, implying positive correlation. WTI prices rose 8.4% in 3Q17, which could have affected Chevron stock positively.

Chevron posted its 2Q17 and 1H17 results during 3Q17, and its 2Q17 earnings surpassed estimates. For more on this topic, please read Chevron Stock Rose 2% on Strong 2Q17 Earnings.

Chevron switched from a loss of ~$2.2 billion in 1H16 to a gain of ~$4.1 billion in its 1H17 results. This improvement was due to an across-the-board rise in segmental earnings. The company’s Upstream segment, which reported a loss of ~$3.9 billion in 1H16, rose to ~$2.4 billion in 1H17 following a rise in crude oil prices.

Chevron’s International Upstream operations had positive earnings in 1H17 compared to negative earnings in 1H16. The company’s Downstream earnings rose from ~$2.0 billion in 1H16 to ~$2.1 billion in 1H17.

In the next part, we’ll look at Total’s (TOT) stock returns in 3Q17.

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