Chevron stock is one of the worst blue chips to own in May, historically
When we checked in on blue-chip oil concern Chevron Corporation (NYSE:CVX) last Friday, the company had just come off an earnings and revenue beat for its first quarter. However, Jefferies called the report "underwhelming," and CVX wound up logging a 3.2% drop for the day. Chevron is struggling for direction during today's trading, as a few belated bear notes roll in from analysts. Even further, it looks like the stock could extend these losses well into May, if history is any indicator.
To be more specific, Chevron stock just popped up on Schaeffer's Senior Quantitative Analyst Rocky White's list of worst performing equities this month, going back 10 years. In fact, Chevron stock is the second worst Dow member to own, just trailing Walgreens Boots Alliance (WBA), as it's averaged a 2.6% drop during the month, with 80% of these monthly returns negative. A similar move from its current perch would put CVX back near the $151 region, and even further from its record high near $174.
Circling back to those bear notes. No less than three analysts have chimed in with downgrades today, the lowest coming from Goldman Sachs to $160. The 12-month consensus price target now sits at $173.63 -- a 9.9% premium to current levels. Meanwhile, CVX could be ripe for a more downgrades, as 10 of the 15 in coverage call the stock a "buy" or better.