Chevron (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.
CVX in downward trend: price dove below 50-day moving average on May 20, 2026
CVX moved below its 50-day moving average on May 20, 2026 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CVX as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
CVX broke above its upper Bollinger Band on April 29, 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.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where CVX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CVX just turned positive on June 03, 2026. Looking at past instances where CVX's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVX advanced for three days, in of 377 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 358 cases where CVX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 28, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (2.030) is normal, around the industry mean (2.024). P/E Ratio (32.632) is within average values for comparable stocks, (20.885). Projected Growth (PEG Ratio) (0.820) is also within normal values, averaging (1.257). Dividend Yield (0.037) settles around the average of (0.042) among similar stocks. P/S Ratio (1.929) is also within normal values, averaging (1.774).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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General Information
a company which explores and refines oil and natural gas
Industry IntegratedOil
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