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

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In the latest close session, Occidental Petroleum (OXY - Free Report) was up +1.23% at $45.40. The stock's performance was ahead of the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%.

Coming into today, shares of the oil and gas exploration and production company had lost 2.31% in the past month. In that same time, the Oils-Energy sector gained 2.31%, while the S&P 500 gained 4.26%.

The investment community will be closely monitoring the performance of Occidental Petroleum in its forthcoming earnings report. The company is predicted to post an EPS of $0.48, indicating a 52% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.64 billion, down 7.18% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.26 per share and revenue of $26.64 billion, indicating changes of -34.68% and -0.89%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Occidental Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.22% decrease. Occidental Petroleum is currently a Zacks Rank #3 (Hold).

In terms of valuation, Occidental Petroleum is presently being traded at a Forward P/E ratio of 19.84. This indicates a premium in contrast to its industry's Forward P/E of 15.16.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 196, this industry ranks in the bottom 21% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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