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Occidental Petroleum (OXY) Laps the Stock Market: Here's Why

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Occidental Petroleum (OXY - Free Report) closed the most recent trading day at $48.10, moving +1.33% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.48%.

The oil and gas exploration and production company's shares have seen a decrease of 0.29% over the last month, not keeping up with the Oils-Energy sector's gain of 4.06% and the S&P 500's gain of 2.87%.

The investment community will be closely monitoring the performance of Occidental Petroleum in its forthcoming earnings report. The company's upcoming EPS is projected at $0.49, signifying a 51.00% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.64 billion, down 7.18% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $26.64 billion. These totals would mark changes of -34.68% and -0.88%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Occidental Petroleum. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.07% upward. Occidental Petroleum is currently a Zacks Rank #3 (Hold).

With respect to valuation, Occidental Petroleum is currently being traded at a Forward P/E ratio of 20.97. This expresses a premium compared to the average Forward P/E of 16.75 of its industry.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% 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.

To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.


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