Chevron (CVX) Stock Declines Amid Falling Oil Prices
NEW YORK (TheStreet) -- Chevron (CVX) - Get Report stock is down 1.96% to $96.22 in early afternoon trading on Wednesday amid a decline in oil prices today.
WTI Crude decreased 3.19% to $46.37 per barrel, while Brent crude declined 3.64% to $48.70 per barrel this afternoon, according to the CNBC.com index.
Oil prices are declining due to higher-than-expected increase in oil stocks this week and amid OPEC expectations that demand for its oil will remain pressured, Reuters reports.
Chevron is an upstream and midstream oil and natural gas company based in San Ramon, CA.
U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years, according to a EIA report this week.
Separately, TheStreet Ratings team rates TECK RESOURCES LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate TECK RESOURCES LTD (TCK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TECK RESOURCES LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TECK RESOURCES LTD reported lower earnings of $0.63 versus $1.66 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 2654.8% when compared to the same quarter one year ago, falling from $84.00 million to -$2,146.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, TECK RESOURCES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.29%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2764.28% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.36 is sturdy.
- You can view the full analysis from the report here: TCK
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.