Occidental Petroleum (OXY) Gains As Market Dips: What You Should Know

Occidental Petroleum (OXY) closed the most recent trading day at $63.49, moving +2.76% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.

The oil and gas exploration and production company’s shares have seen an increase of 4.64% over the last month, surpassing the Oils-Energy sector’s gain of 2% and the S&P 500’s loss of 1.99%.

Investors will be eagerly watching for the performance of Occidental Petroleum in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.37, marking a 114.06% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.69 billion, down 0.46% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.2 per share and a revenue of $26.89 billion, indicating changes of +180.54% and +5.71%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Occidental Petroleum. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 6.68% rise in the Zacks Consensus EPS estimate. Currently, Occidental Petroleum is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Occidental Petroleum is holding a Forward P/E ratio of 9.97. Its industry sports an average Forward P/E of 20.7, so one might conclude that Occidental Petroleum is trading at a discount comparatively.

Investors should also note that OXY has a PEG ratio of 0.96 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. OXY’s industry had an average PEG ratio of 1.8 as of yesterday’s close.