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These stocks aren’t done falling

Chevron (CVX)

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

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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.