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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 $51.18 in the latest trading session, marking a +0.16% move from the prior day. This move outpaced the S&P 500's daily loss of 0.65%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.46%.

Coming into today, shares of the oil and gas exploration and production company had gained 1.49% in the past month. In that same time, the Oils-Energy sector gained 3.03%, while the S&P 500 gained 4.11%.

OXY will be looking to display strength as it nears its next earnings release, which is expected to be July 31, 2019. On that day, OXY is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 2.73%. Our most recent consensus estimate is calling for quarterly revenue of $4.46 billion, up 9.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.74 per share and revenue of $16.96 billion, which would represent changes of -25.35% and -10.19%, respectively, from the prior year.

Any recent changes to analyst estimates for OXY should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has moved 3.21% lower. OXY is currently a Zacks Rank #3 (Hold).

In terms of valuation, OXY is currently trading at a Forward P/E ratio of 13.67. Its industry sports an average Forward P/E of 13.67, so we one might conclude that OXY is trading at a no noticeable deviation comparatively.

We can also see that OXY currently has a PEG ratio of 2.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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