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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 $60.04 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.

Coming into today, shares of the oil and gas exploration and production company had gained 0.81% in the past month. In that same time, the Oils-Energy sector gained 0.6%, while the S&P 500 gained 3.78%.

Wall Street will be looking for positivity from Occidental Petroleum as it approaches its next earnings report date. In that report, analysts expect Occidental Petroleum to post earnings of $1.15 per share. This would mark a year-over-year decline of 63.61%. Our most recent consensus estimate is calling for quarterly revenue of $7.42 billion, down 30.92% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $5.09 per share and revenue of $30.3 billion. These results would represent year-over-year changes of -45.56% and -18.31%, respectively.

Investors should also note any recent changes to analyst estimates for Occidental Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 12.38% lower. Occidental Petroleum is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Occidental Petroleum's current valuation metrics, including its Forward P/E ratio of 11.68. Its industry sports an average Forward P/E of 13.28, so we one might conclude that Occidental Petroleum is trading at a discount comparatively.

It is also worth noting that OXY currently has a PEG ratio of 0.53. 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. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.

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