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Occidental Petroleum (OXY) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Occidental Petroleum (OXY) closed at $63.55, marking a +1.16% move from the previous day. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the oil and gas exploration and production company had gained 8.55% in the past month. In that same time, the Oils-Energy sector gained 0.29%, while the S&P 500 gained 7.25%.

Wall Street will be looking for positivity from Occidental Petroleum as it approaches its next earnings report date. This is expected to be August 2, 2022. In that report, analysts expect Occidental Petroleum to post earnings of $2.90 per share. This would mark year-over-year growth of 806.25%. Meanwhile, our latest consensus estimate is calling for revenue of $9.59 billion, up 59.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.40 per share and revenue of $37.14 billion. These totals would mark changes of +307.84% and +41.13%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. Occidental Petroleum is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Occidental Petroleum's current valuation metrics, including its Forward P/E ratio of 6.04. This valuation marks a discount compared to its industry's average Forward P/E of 11.61.

We can also see that OXY currently has a PEG ratio of 0.19. 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 industry currently had an average PEG ratio of 0.32 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 68, which puts it in the top 27% 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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