Short-Term Pain, Long-Term Gain: Chevron Corporation (CVX), Valero Energy Corporation (VLO)

Chevron Corporation (NYSE:CVX) has its shares plummet by -9.6% or $12.23 from its all-time high of $127.34. The drop in the price of the shares saw it stand at $115.11 per share. CVX has been trading at a low of $100.22 over the past one year but it surged by 14.86% or $14.89 to reach the $115.11 mark. Following the massive rise in stock price, CVX received more attention from investors and analysts. On Wednesday, the stock dipped by -1.03%, which caused investors and analysts to worry about it. Following the plunge in price, the CVX beta stands at 1.01, implying that its volatility level has gone up by -0.01 ahead of the general market. A look at the stock’s 200-day moving average shows that it is -3.97% below while its 50-day moving average shows that it is currently -2.9% below. Compared to 1.56% average daily volatility of past month, the stock’s average volatility for this week has decreased by -0.26 as the volatility level currently stands at 1.3%.

Over the past seven days, the stock has witnessed a price surge by 1.74%. This massive rise in stock price has caught the attention of both investors and market traders. The stock has performed poorly over the past 52 weeks, dropping by -1.56% during that time frame and is now up by 5.81% since this point this year. CVX has fell by -7.09% over the past 30 days, with its equity price losing% of its value over the past ninety days. These figures add up to see the stock record a shortfall of -4.29% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of CVX. Most of them are of the view that the stock would be able to reach $137.75 over the next 12 months. If that happens, then the stock would witness a 19.67% rise in its price and that would see the stock’s market cap hit an astonishing $258 Billion. Analysts view this stock as a bullish at the moment as its average rating is 2. According to Reuters, most of the 14 analysts covering the stock at the moment believe it is a Buy. 1 of them rated CVX as a Hold while 13 of them either rated it as a Buy or a Strong Buy. However, 0 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a neutral position as it was able to attain 43.26 points. he trading volume now standing at 3602897 shares. The decrease of -2147103 shares in trading volume shows that traders and investors have shown less interest in the stock over the past few weeks. During that trading session, the average trading volume of CVX was 5750000 shares, which is more than 0.63 times higher than its usual trading volume.

Valero Energy Corporation has seen its stock (NYSE:VLO) plunge by $-0.36 or -0.4% to currently trade at $89.09. This fall in the price of the stock has seen it establish a strong support at $88.41 a share. If the stock price is to drop below that support level, then it would be followed by a bearish trend. A slip below $87.74 would be bad for VLO as it would mean that the stock has lost 1.52% of its value. The stock going in the opposite direction and breaking past the resistance point to reach $90.02 would see it surge even higher. VLO would attempt to surge past the upward resistance point which is set at $90.96 a share. VLO has an average volatility of 2.1% over the past 30 days, while it has gained 22.76% of its value compared to its 52-weeks low point which stands at $68.81 on Dec 26, 2018. In the same breath, VLO has lost 0.47% compared to its 52-weeks high point which currently stands at $88.67 a share reached on Oct 17, 2018.

Analysts have set a 1-year price target for this stock, with most of them expecting it to reach $98.89/share over the next 12 months. If that happens, then VLO would witness a 11% rise from its current price. The price of the stock has been moving between $88.67 and $90.28. Not all analysts believe it would hit that target though, as some of them expect it to trade lower, as low as $73 per share. In the same breath, one analyst believes that the stock is set to soar even higher than expected, as the price target was set at $121.

The stock is currently overbought as its Stochastic Oscillator (%D) is at 90.72%, which implies that a dip in price could be experienced soon. Its shares P/S ratio is above the 0.09 industry average and above the 0.29 by the wider market, as VLO’s P/S ratio currently stands at 0.33. The stock’s estimated price-earnings (P/E) multiple is 9.37 which is also below the 12-month price-earnings (P/E) which stands at 14.84. Valero Energy Corporation has experienced a rise in its earnings, recording an increase rate of 7.9% in each quarter over the past five years.

The stock has an average rating of 1.9 which means that it has been rated as a Buyby most analysts. The stock is being covered by 11 analysts who gave a consensus recommendation of 1.9 which implies that it is currently in a bull/bear situation. Reuters looked into analysts covering Valero Energy Corporation, and 1 of them believe that the stock is a Hold at the moment. 10 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (0) rated it as a sell at the moment.