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Occidental Petroleum (OXY) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Occidental Petroleum (OXY) closed at $41.03, marking a +0.47% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.6%.

Heading into today, shares of the oil and gas exploration and production company had lost 11.77% over the past month, lagging the Oils-Energy sector's loss of 3.19% and the S&P 500's loss of 1.87% 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 $0.57 per share, which would represent a year-over-year decline of 67.8%. Our most recent consensus estimate is calling for quarterly revenue of $5.29 billion, down 14.33% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $2.95 per share and revenue of $20.86 billion. These results would represent year-over-year changes of -41.12% and +10.46%, respectively.

Investors should also note any recent changes to analyst estimates for OXY. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.56% lower within the past month. OXY currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that OXY has a Forward P/E ratio of 13.86 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.86.

Meanwhile, OXY's PEG ratio is currently 2.77. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% 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.

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


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