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Occidental Petroleum (OXY) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, Occidental Petroleum (OXY) closed at $64.41, marking a -1.04% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the oil and gas exploration and production company had gained 0.32% in the past month. In that same time, the Oils-Energy sector gained 1.38%, while the S&P 500 lost 9.06%.

Occidental Petroleum will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.90, up 233.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.93 billion, up 45.65% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $11.03 per share and revenue of $39.06 billion. These results would represent year-over-year changes of +332.55% and +48.43%, respectively.

Investors should also note any recent changes to analyst estimates for Occidental Petroleum. These revisions help to show the ever-changing nature 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Occidental Petroleum is currently a Zacks Rank #3 (Hold).

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 5.9. Its industry sports an average Forward P/E of 10.68, so we one might conclude that Occidental Petroleum is trading at a discount comparatively.

Investors should also note that OXY has a PEG ratio of 0.35 right now. 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. OXY's industry had an average PEG ratio of 0.38 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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