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Occidental Petroleum (OXY) Gains As Market Dips: What You Should Know

Zacks Equity Research

Occidental Petroleum (OXY) closed at $39.89 in the latest trading session, marking a +0.45% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the oil and gas exploration and production company had lost 0.55% over the past month, lagging the Oils-Energy sector's gain of 4.92% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from OXY as it approaches its next earnings release. In that report, analysts expect OXY to post earnings of $0.13 per share. This would mark a year-over-year decline of 89.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.31 billion, up 31.32% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $20.70 billion. These results would represent year-over-year changes of -64.67% and +9.58%, respectively.

Investors should also note any recent changes to analyst estimates for OXY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 2.05% lower within the past month. OXY is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note OXY's current valuation metrics, including its Forward P/E ratio of 22.49. Its industry sports an average Forward P/E of 17.82, so we one might conclude that OXY is trading at a premium comparatively.

It is also worth noting that OXY currently has a PEG ratio of 4.5. 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 industry currently had an average PEG ratio of 2.19 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 76, which puts it in the top 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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