It’s always nice when you can jump out ahead of the analysts a bit, and it may be that there is a chance to do that now. The price of oil fell precipitously alongside stocks; unlike stocks, it has not rebounded. Many oil and gas stocks have begun to rebound anyway—blame a stock market that is always willing bet on a rising price of oil, for reasons no man can say. Shares of CVX stock have jumped about 3% since hitting bottom on Monday. That’s not a great deal, but for every day the price of CVX rises while the price of oil falls, the risk/reward ratio of the stock gets a little worse. CVX has a trailing P/E of 33.56, which is right on up there. The projected forward P/E is only 18.24. That would seem to mitigate things, but that forecast was made before the price of oil fell from nearly $65 to $61 and change.
Chart courtesy of www.stockcharts.com