How Has Short Interest in CVX Trended?
Chevron (CVX) has seen a rise in its short interest (as a percentage of outstanding shares) from 1.2% on July 3, 2017, to the current level of 1.5%.
CVX is trading at a forward PE (price-to-earnings ratio) of 25.4x above its peer average of 18.9x.
In October 2017, 25 analysts rated CVX. Of the total, 16 analysts have assigned a “buy” or “strong buy” rating.
In this part, we’ll look at Chevron’s (CVX) stock price forecast range based on its implied volatility for the ten-day period up to its earnings.
On July 3, 2017, Chevron’s (CVX) 50-day moving average stood below its 200-day moving average.
Overall, WTI prices have risen 10.2% since July 3. In the stated period, WTI prices have been considerably influenced by Hurricane Harvey.
Chevron is likely to see growth in its upstream and downstream earnings in 3Q17 over 3Q16.
Chevron (CVX) is expected to post its 3Q17 results on October 27, 2017. In 2Q17, CVX’s revenues surpassed Wall Street analysts’ estimate by 8.0%.
ExxonMobil (XOM) has seen a rise in its short interest (as a percentage of outstanding shares) from 0.8% at the end of July to its current level of 0.9%.
Of the 26 analysts covering ExxonMobil (XOM) stock, eight (31%) have assigned a “buy” or “strong buy” rating, while 12 (46%) have assigned “hold” ratings.
The implied volatility of XOM stock has fallen from 14.5% on July 3, 2017, to 12.7%. During the same period, ExxonMobil stock has risen 0.4%.
On July 3, 2017, ExxonMobil’s 50-day moving average was below its 200-day moving average. Prior to that, the stock had been volatile in anticipation of its 2Q17 earnings.
The overall rise in WTI (West Texas Intermediate) prices since July 3 has likely led ExxonMobil stock to deliver a positive return.
ExxonMobil’s (XOM) Upstream earnings rose to ~$1.2 billion in 2Q17 from $294 million 2Q16 due to a year-over-year surge in crude oil prices in 2Q17.
ExxonMobil (XOM) is expected to post its 3Q17 results on October 27, 2017. In 2Q17, XOM’s revenues surpassed Wall Street’s estimates by 2%.
The correlation of XOM, CVX, and RDS.A fell 0.07, 0.01, and 0.01, respectively, in the past three months.
WTI prices currently stand at $52 per barrel compared to the three-year average of $50 per barrel.
While XOM and BP’s betas stand above the peer average, CVX and Shell’s betas stand below the average.
The PEG ratios of Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) stand below the peer average at 0.23, 0.41, and 0.36, respectively.
In the previous part, we reviewed the comparison of integrated energy stocks in terms of forward valuations. Now, in this part, we will consider the changes in short interest. ExxonMobil…