GET DAILY SIGNALSChevron (CVX, $117.66) shares get downgraded by Bank of America on cash flow concerns
Chevron shares got a rating downgrade from Bank of America analysts, on valuation concerns.
Analysts at Bank of America lowered their rating on the oil behemoth’s shares to underperform from neutral, on what they perceive are fully valued at current levels.
Calling his own view as “ counter-consensus”, Leggate argued that a discounted-cash-flow-based valuation suggests that the shares are fairly valued at current levels, assuming a $60 Brent crude base.
The analyst anticipates Chevron’s major growth driver, the Permian Basin, to hurt its cash margins, since U.S. production is leaning towards gas and natural-gas liquids.
Furthermore, Leggate indicated that ever since oil prices crashes in 2015, Chevron has increasingly focused on reducing spending and engaging in share buybacks . The analyst views the share buybacks as a sign of “ underinvestment” that compromises visibility on new projects needed to sustain free cash flow growth and bolster sustained dividend growth.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CVX's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for CVX turned positive on October 09, 2026. Looking at past instances where CVX's MACD turned positive, the stock continued to rise in 35 of 53 cases over the following month. The odds of a continued upward trend are 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on CVX as a result. In 55 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
Following a +1.07% 3-day Advance, the price is estimated to grow further. Considering data from situations where CVX advanced for three days, in 232 of 381 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 194 of 346 cases where CVX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CVX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 40%.
CVX broke above its upper Bollinger Band on October 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 26, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 7 (best 1 - 100 worst), indicating outstanding price growth. CVX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.397) is normal, around the industry mean (1.727). CVX has a moderately high P/E Ratio (22.266) as compared to the industry average of (11.616). Projected Growth (PEG Ratio) (0.903) is also within normal values, averaging (1.088). Dividend Yield (0.031) settles around the average of (0.045) among similar stocks. P/S Ratio (2.004) is also within normal values, averaging (3.764).
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General Information
a company which explores and refines oil and natural gas
Industry IntegratedOil
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