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Occidental Petroleum (OXY) Stock Falls Amid Market Uptick: What Investors Need to Know

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Occidental Petroleum (OXY - Free Report) closed at $62.53 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.93%.

Shares of the oil and gas exploration and production company witnessed a loss of 0.54% over the previous month, beating the performance of the Oils-Energy sector with its loss of 0.7% and the S&P 500's loss of 2.29%.

The upcoming earnings release of Occidental Petroleum will be of great interest to investors. The company's earnings report is expected on November 7, 2023. The company is forecasted to report an EPS of $0.93, showcasing a 61.89% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.26 billion, down 23.61% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $28.88 billion, indicating changes of -57.01% and -22.16%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Occidental Petroleum. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.74% upward. Occidental Petroleum is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Occidental Petroleum is presently trading at a Forward P/E ratio of 15.65. For comparison, its industry has an average Forward P/E of 15.37, which means Occidental Petroleum is trading at a premium to the group.

Meanwhile, OXY's PEG ratio is currently 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OXY's industry had an average PEG ratio of 0.74 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 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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