NEW YORK (TheStreet) -- Chevron Corp. (CVX) - Get Report stock is advancing by 1.10% to $91.35 in late morning trading on Tuesday as oil prices recovered after falling more than 3% on Monday.

WTI crude is up by 2.28% to $37.65 per barrel, while Brent crude is rising by 2.35% to $37.48 per barrel this morning, according to the index.

Crude oil is gaining in anticipation of a decline in U.S. commercial crude oil inventories, which are expected to have dropped by 2.5 million barrels last week, making it the second week of drawbacks, Bloomberg reports.

"We should get another draw in oil inventories tomorrow," Confluence Investment Management chief market strategist Bill O'Grady told Bloomberg. "There's a slight chance that crude supplies rose last week, and if that's the case it will be due to imports."

San Ramon, CA-based Chevron produces and transports crude oil, natural gas and petroleum products.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CHEVRON CORP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CVX's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • CVX, with its decline in revenue, slightly underperformed the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 37.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHEVRON CORP's return on equity is below that of both the industry average and the S&P 500.
  • CHEVRON CORP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHEVRON CORP reported lower earnings of $10.14 versus $11.09 in the prior year. For the next year, the market is expecting a contraction of 67.8% in earnings ($3.26 versus $10.14).
  • You can view the full analysis from the report here: CVX