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Occidental Petroleum (OXY) Outpaces Stock Market Gains: What You Should Know

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Occidental Petroleum (OXY - Free Report) closed at $62.76 in the latest trading session, marking a +1.44% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.

Prior to today's trading, shares of the oil and gas exploration and production company had gained 6.34% over the past month. This has outpaced the Oils-Energy sector's gain of 5.13% and the S&P 500's gain of 3.31% in that time.

Investors will be hoping for strength from Occidental Petroleum as it approaches its next earnings release, which is expected to be May 9, 2023. On that day, Occidental Petroleum is projected to report earnings of $1.30 per share, which would represent a year-over-year decline of 38.68%. Meanwhile, our latest consensus estimate is calling for revenue of $7.55 billion, down 11.56% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.69 per share and revenue of $30.92 billion. These totals would mark changes of -39.14% and -16.66%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Occidental Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.03% lower within the past month. Occidental Petroleum is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Occidental Petroleum is holding a Forward P/E ratio of 10.87. This valuation marks a premium compared to its industry's average Forward P/E of 10.31.

Investors should also note that OXY has a PEG ratio of 0.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.52 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 34, putting it in the top 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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