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Occidental Petroleum (OXY) Gains But Lags Market: What You Should Know

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Occidental Petroleum (OXY - Free Report) closed the most recent trading day at $40.50, moving +1.05% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, added 2.1%.

Heading into today, shares of the oil and gas exploration and production company had lost 11.03% over the past month, outpacing the Oils-Energy sector's loss of 11.69% and lagging the S&P 500's gain of 0.54% in that time.

Wall Street will be looking for positivity from OXY as it approaches its next earnings report date. This is expected to be February 27, 2020. The company is expected to report EPS of $0.14, down 88.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.43 billion, up 33.93% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for OXY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 moved 12.06% higher. OXY is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, OXY is holding a Forward P/E ratio of 26.79. This valuation marks a premium compared to its industry's average Forward P/E of 16.35.

Meanwhile, OXY's PEG ratio is currently 5.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 2.24 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.

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