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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 the most recent trading day at $11.89, moving +0.76% from the previous trading session. The stock outpaced the S&P 500's daily loss of 9.51%. Meanwhile, the Dow lost 9.99%, and the Nasdaq, a tech-heavy index, lost 9.44%.

Prior to today's trading, shares of the oil and gas exploration and production company had lost 72.23% over the past month. This has lagged the Oils-Energy sector's loss of 35.34% and the S&P 500's loss of 18.22% in that time.

OXY will be looking to display strength as it nears its next earnings release. On that day, OXY is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 114.29%. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, up 40.67% from the prior-year quarter.

OXY's full-year Zacks Consensus Estimates are calling for earnings of -$0.80 per share and revenue of $22.64 billion. These results would represent year-over-year changes of -155.17% and +6.61%, respectively.

It is also important to note the recent changes to analyst estimates for OXY. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 153.55% lower. OXY currently has a Zacks Rank of #4 (Sell).

Digging into valuation, OXY currently has a Forward P/E ratio of 118. This valuation marks a premium compared to its industry's average Forward P/E of 8.25.

Meanwhile, OXY's PEG ratio is currently 15.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 8.32 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 189, putting it in the bottom 26% 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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