Occidental Petroleum (OXY) Gains As Market Dips: What You Should Know
In the latest trading session, Occidental Petroleum (OXY) closed at $61.55, marking a +0.51% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the oil and gas exploration and production company had lost 3.94% in the past month. In that same time, the Oils-Energy sector gained 3.44%, while the S&P 500 gained 8.32%.
Occidental Petroleum will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2023. On that day, Occidental Petroleum is projected to report earnings of $1.74 per share, which would represent 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 might also notice recent changes to analyst estimates for Occidental Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 9.13% lower. Occidental Petroleum is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Occidental Petroleum is currently trading at a Forward P/E ratio of 9.46. Its industry sports an average Forward P/E of 11.83, so we one might conclude that Occidental Petroleum is trading at a discount comparatively.
Also, we should mention that OXY has a PEG ratio of 0.4. 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. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.45 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.
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