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 up 75 points (+0.6%) at 13,419 as of Thursday, Oct 11, 2012, 10:35 a.m. ET. During this time, 141.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 574.9 million. The NYSE advances/declines ratio sits at 2,413 issues advancing vs. 463 declining with 93 unchanged.
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The Dow component leading the way higher looks to be Chevron (NYSE: CVX), which is sporting a $1.46 gain (+1.3%) bringing the stock to $113.91. This single gain is lifting the Dow Jones Industrial Average by 11.05 points or roughly accounting for 14.7% of the Dow's overall gain. Volume for Chevron currently sits at 2.4 million shares traded vs. an average daily trading volume of 5.8 million shares.

Chevron has a market cap of $230.28 billion and is part of the basic materials sector and energy industry. Shares are up 5.7% year to date as of Wednesday'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 8.7, 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 has had sub par growth in net income.

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