Occidental Petroleum (OXY) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Occidental Petroleum (OXY) closed the most recent trading day at $56.10, moving -1.34% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.

Coming into today, shares of the oil and gas exploration and production company had lost 3.79% in the past month. In that same time, the Oils-Energy sector gained 1.13%, while the S&P 500 gained 0.96%.

Analysts and investors alike will be keeping a close eye on the performance of Occidental Petroleum in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $1.37, reflecting a 114.06% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.61 billion, indicating a 1.58% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.2 per share and revenue of $26.89 billion, which would represent changes of +180.54% and +5.71%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Occidental Petroleum. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.71% increase. Occidental Petroleum currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Occidental Petroleum is at present trading with a Forward P/E ratio of 9.18. This valuation marks a discount compared to its industry average Forward P/E of 19.95.

Also, we should mention that OXY has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Oil and Gas — Integrated — United States industry had an average PEG ratio of 1.76.