Yahoo Finance Occidental Petroleum (OXY) Gains But Lags Market: What You Should Know
Occidental Petroleum (OXY) closed at $64.79 in the latest trading session, marking a +1.03% move from the prior day. The stock lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 6.63%.
Heading into today, shares of the oil and gas exploration and production company had gained 1.81% over the past month, lagging the Oils-Energy sector's gain of 1.9% and the S&P 500's gain of 4.75% in that time.
Wall Street will be looking for positivity from Occidental Petroleum as it approaches its next earnings report date. This is expected to be February 27, 2023. In that report, analysts expect Occidental Petroleum to post earnings of $1.74 per share. This would mark year-over-year growth of 17.57%. Meanwhile, our latest consensus estimate is calling for revenue of $8.65 billion, up 7.98% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 8.65% lower. Occidental Petroleum is currently a Zacks Rank #3 (Hold).
In terms of valuation, Occidental Petroleum is currently trading at a Forward P/E ratio of 9.85. For comparison, its industry has an average Forward P/E of 12.03, which means Occidental Petroleum is trading at a discount to the group.
Meanwhile, OXY's PEG ratio is currently 0.41. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.44 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
