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Occidental Petroleum (OXY) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with Occidental Petroleum (OXY - Free Report) standing at $51.39, reflecting a +1.96% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 2.53%. Meanwhile, the Dow gained 3.57%, and the Nasdaq, a tech-heavy index, added 2.95%.

Prior to today's trading, shares of the oil and gas exploration and production company had lost 7.22% over the past month. This has lagged the Oils-Energy sector's loss of 3.81% and the S&P 500's gain of 0.66% in that time.

The investment community will be paying close attention to the earnings performance of Occidental Petroleum in its upcoming release. The company is slated to reveal its earnings on November 12, 2024. On that day, Occidental Petroleum is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 31.36%. Meanwhile, the latest consensus estimate predicts the revenue to be $7.47 billion, indicating a 0.98% increase compared to the same quarter of the previous year.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $27.85 billion. These results would represent year-over-year changes of -11.08% and -3.71%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.12% lower. Right now, Occidental Petroleum possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Occidental Petroleum is holding a Forward P/E ratio of 15.3. This signifies a discount in comparison to the average Forward P/E of 16.4 for its industry.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank is ordered 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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