Chevron (CVX, $85.50) to buy Noble (NBL, $10.18) for $5 billion in stock
On Monday, energy behemoth Chevron announced that it will buy Noble Energy for $5 billion in stock.
Chevron will buy Noble at $10.38 a share, or 0.1191 a Chevron share. The deal implies a price around 7.6% premium over Noble’s Friday closing price of $9.65 . The total enterprise value (i.e. including Noble’s debt) of the deal is $13 billion.
“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” Chevron CEO Michael Wirth said. “This is a cost-effective opportunity for to acquire additional proved reserves and resources."
According to Tickeron, CVX in Uptrend: price may ascend as a result of having broken its lower Bollinger Band on July 09, 2020
This price move signals that CVX may jump back above the lower band and head toward the middle band. Traders may consider buying the ticker or exploring call options. In 23 of 36 cases where CVX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 64%.
Current price $85.42 crossed the support line at $85.92 and is trading between $85.92 support and $85.06 support lines. Throughout the month of 06/16/20 - 07/17/20, the price experienced a -7% Downtrend, while the week of 07/10/20 - 07/17/20 shows a +2% Uptrend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where CVX's MACD histogram became positive, in 20 of 45 cases, the price rose further within the following month. The odds of a continued Uptrend are 44%.
Bearish Trend Analysis
The Stochastic Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on July 17, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 28 of 91 cases where CVX's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 31%.
The price moved below its 50-day Moving Average, which indicates a reversal from an Uptrend to a Downtrend. In 23 of 52 cases where CVX's price crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 44%.
The 10-day Moving Average for this ticker crossed below its 50-day Moving Average on June 26, 2020. This can be construed as a sell signal, indicating that the trend is shifting lower. In 9 of 16 cases where CVX's 10-day Moving Average crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 56%.
Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where CVX declined for three days, in 115 of 264 cases, the price rose further within the following month. The odds of a continued Downtrend are 44%.
The Aroon Indicator entered a Downtrend today. In 44 of 89 cases where CVX Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 49%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1.02 to 1.
The Tickeron PE Growth Rating for this company is 8 (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 Price Growth Rating for this company is 60 (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 Valuation Rating of 75 (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 (1.13) is normal, around the industry mean (1.01). P/E Ratio (43.10) is within average values for comparable stocks, (17.70). Projected Growth (PEG Ratio) (0.74) is also within normal values, averaging (1.88). Dividend Yield (3.95) settles around the average of (7.26) among similar stocks. P/S Ratio (1.00) is also within normal values, averaging (1.28).
The Tickeron Profit vs. Risk Rating rating for this company is 87 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CVX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 99, placing this stock better than average.
The Tickeron SMR rating for this company is 94 (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.
CVX's Stochastic Oscillator remains in oversold zone for 2 days
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for CVX moved above the 200-day moving average on April 03, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVX advanced for three days, in of 334 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 282 cases where CVX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CVX moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CVX as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CVX turned negative on April 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 01, 2024. 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 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 69, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CVX’s price grows at a lower 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 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 (best 1 - 100 worst) indicates that the company is significantly 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 (1.836) is normal, around the industry mean (1.218). P/E Ratio (14.004) is within average values for comparable stocks, (24.146). Projected Growth (PEG Ratio) (4.497) is also within normal values, averaging (4.841). Dividend Yield (0.039) settles around the average of (0.107) among similar stocks. P/S Ratio (1.519) is also within normal values, averaging (0.979).
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General Information
a company which explores and refines oil and natural gas
Industry IntegratedOil