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Occidental Petroleum (OXY) Gains As Market Dips: What You Should Know

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In the latest close session, Occidental Petroleum (OXY - Free Report) was up +1.38% at $43.31. The stock's performance was ahead of the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the oil and gas exploration and production company had gained 6.3% in the past month. In that same time, the Oils-Energy sector gained 0.24%, while the S&P 500 gained 2.26%.

The investment community will be paying close attention to the earnings performance of Occidental Petroleum in its upcoming release. The company is forecasted to report an EPS of $0.33, showcasing a 58.75% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6 billion, reflecting a 12.17% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.25 per share and revenue of $26.05 billion, indicating changes of -34.97% and 0%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Occidental Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.76% lower. As of now, Occidental Petroleum holds a Zacks Rank of #4 (Sell).

With respect to valuation, Occidental Petroleum is currently being traded at a Forward P/E ratio of 36.34. This expresses a premium compared to the average Forward P/E of 17.36 of 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 166, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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