Occidental Petroleum (OXY) Advances While Market Declines: Some Information for Investors

The recent trading session for Occidental Petroleum (OXY) concluded with the stock at $47.65, indicating a modest increase of +0.83% compared to the previous trading day's close. This performance stands out as it outpaces the overall decline observed in the market, with the S&P 500 experiencing a drop of 1.07%. In addition, the Dow Jones Industrial Average fell by 0.62%, while the tech-heavy Nasdaq Composite saw a larger decline of 1.71%.

Throughout the last month, shares of Occidental Petroleum have faced a decrease of 1.66%. This decline positions the company slightly behind the Oils-Energy sector, which registered a loss of 1.46%, and significantly ahead of the S&P 500’s total drop of 7.03%.

As investors look ahead, they are particularly interested in the forthcoming earnings release from Occidental Petroleum. Expectations are set for the company to report earnings of $0.74 per share, suggesting a year-over-year growth of 13.85%. The latest consensus estimate predicts that the company will generate revenues of approximately $7.07 billion, reflecting a significant increase of 17.65% compared to the same quarter last year.

Looking at the fiscal year as a whole, the Zacks Consensus Estimates forecast that Occidental Petroleum will achieve earnings of $3.27 per share and revenue of $29.46 billion. These figures indicate a decline of 5.49% in earnings and a 9.61% increase in revenue compared to the previous year.

Recent movements in analyst estimates for Occidental Petroleum could also capture investor interest. These revisions are indicative of transient business trends and can adjust rapidly. An increase in analysts’ estimates typically signals a positive outlook regarding the company’s performance and profit potential.

Research has shown that changes in estimates correlate strongly with short-term share price movements. To leverage this phenomenon, the Zacks Rank offers a ranking system that incorporates these estimate changes to generate actionable investment ratings.

With a Zacks Rank that ranges from #1 (Strong Buy) to #5 (Strong Sell), the ranking system boasts a commendable track record. Stocks rated #1 have delivered an average annual return of +25% since 1988. Over the past month, there has been an 8.16% decline in the Zacks Consensus EPS estimate for Occidental Petroleum, which currently holds a Zacks Rank of #3 (Hold).

In terms of valuation, Occidental Petroleum is trading at a Forward P/E ratio of 14.44. For context, the average Forward P/E ratio in its industry is 14.33, indicating that Occidental Petroleum trades at a slight premium to its peers.

Occidental Petroleum operates within the Oil and Gas - Integrated - United States industry, which is part of the broader Oils-Energy sector. Presently, this industry holds a Zacks Industry Rank of 56, placing it in the top 23% out of over 250 industry groupings.

The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of the individual stocks in those groups. Historical data reveals that the top half of rated industries tend to outperform the bottom half by a ratio of 2 to 1.

To keep track of Occidental Petroleum’s performance in the upcoming trading sessions, investors are encouraged to stay informed about the latest updates and insights.

Occidental, Petroleum, Investors