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Trade-Ideas LLC identified

Chevron

(

CVX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chevron as such a stock due to the following factors:

  • CVX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
  • CVX has traded 1.3 million shares today.
  • CVX is trading at 2.38 times the normal volume for the stock at this time of day.
  • CVX is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CVX:

TheStreet Recommends

Chevron Corporation, through its subsidiaries, engages in the petroleum, chemicals, and power and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The stock currently has a dividend yield of 6.1%. CVX has a PE ratio of 11. Currently there are 6 analysts that rate Chevron a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Chevron has been 9.0 million shares per day over the past 30 days. Chevron has a market cap of $131.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.24 and a short float of 1% with 1.38 days to cover. Shares are down 34.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chevron as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • CVX's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • CVX, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 34.8%. 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHEVRON CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for CHEVRON CORP is rather low; currently it is at 20.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.63% trails that of the industry average.

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