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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 the most recent trading day at $37.06, moving +0.79% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the oil and gas exploration and production company had gained 24.73% over the past month. This has outpaced the Oils-Energy sector's gain of 10.7% and the S&P 500's loss of 7.66% in that time.

Occidental Petroleum will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2022. On that day, Occidental Petroleum is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 237.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 113.51% from the year-ago period.

Any recent changes to analyst estimates for Occidental Petroleum should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.31% higher. Occidental Petroleum is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 11.67. Its industry sports an average Forward P/E of 11.67, so we one might conclude that Occidental Petroleum is trading at a no noticeable deviation comparatively.

It is also worth noting that OXY currently has a PEG ratio of 0.31. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.57 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 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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