Comprehensive Analysis of Chevron (CVX) - 16/09/2024Chevron (CVX) is an established energy company listed in the S&P 500 index.
Technical Analysis: I use moving averages as zones rather than lines. On the weekly chart, I applied the 200 EMA and 200 SMA, shading the area between them in orange to create a moving average zone. Currently, prices are finding support in this zone on the weekly chart.
Additionally, the $140 level acts as a demand zone and creates confluence.
On the daily chart, the ATR-based Keltner Channels are touching the lower band, indicating that downside volatility has reached its natural limits. There is also a bullish order block present.
On the 4-hour chart, I use the Inverse Fisher RSI. It filters out noise and provides fewer false signals compared to the standard RSI.
On the 1-hour chart, there is a noticeable decline in volume. Remember, without volume, it is difficult to break through support or resistance levels. From a technical standpoint, different timeframes are giving BUY signals.
Fundamental Analysis: The company has a price-to-earnings ratio of 13.81, which is considered normal for the sector. In the last quarter, Chevron reported total revenue of $49.66 billion and a net profit of $4.43 billion, resulting in a 9% profit margin, which meets my no-loss rule.
Chevron has strong return on equity, and growth continues. Its current ratio is 1.16, meaning its short-term assets exceed its liabilities, indicating financial stability.
The price-to-book ratio is 1.60, which is excellent for a company of this size.
Chevron's total assets stand at $260 billion, while total liabilities are around $100 billion, meaning the company's debt-to-assets ratio is 38.51%, which is highly acceptable.
The company’s annual dividend yield is 4.55%, providing a potential bonus for long-term investors.
With CVX trading near its 52-week low and showing positive signals, it could be a good choice for portfolio managers.
