Dow Today: Chevron (CVX) Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 29.0 points (-0.2%) at 13,550 as of Monday, Sep 24, 2012, 12:35 p.m. ET. During this time, 264.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.7 million. The NYSE advances/declines ratio sits at 1,212 issues advancing vs. 1,686 declining with 143 unchanged.
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The Dow component leading the way higher looks to be Chevron (NYSE: CVX), which is sporting a 28-cent gain (+0.2%) bringing the stock to $118.08. Volume for Chevron currently sits at 3.4 million shares traded vs. an average daily trading volume of 5.8 million shares.

Chevron has a market cap of $231.24 billion and is part of the basic materials sector and energy industry. Shares are up 10.8% year to date as of Friday's close. The stock's dividend yield sits at 3.1%.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The company has a P/E ratio of 8.8, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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