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

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Occidental Petroleum (OXY - Free Report) closed at $33.21 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the oil and gas exploration and production company had gained 8.33% in the past month. In that same time, the Oils-Energy sector gained 4.81%, while the S&P 500 gained 2.36%.

Occidental Petroleum will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect Occidental Petroleum to post earnings of $1.10 per share. This would mark year-over-year growth of 241.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.16 billion, up 113.84% from the year-ago period.

Any recent changes to analyst estimates for Occidental Petroleum should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.72% higher. Occidental Petroleum is currently a Zacks Rank #3 (Hold).

Investors should also note Occidental Petroleum's current valuation metrics, including its Forward P/E ratio of 10.64. This valuation marks a discount compared to its industry's average Forward P/E of 12.16.

Meanwhile, OXY's PEG ratio is currently 0.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.53 based on yesterday's closing prices.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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