U.S. Markets closed

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

Zacks Equity Research

Occidental Petroleum (OXY) closed the most recent trading day at $41.18, moving +1.68% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.17%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the oil and gas exploration and production company had lost 13.03% over the past month. This has lagged the Oils-Energy sector's loss of 10.05% and the S&P 500's gain of 2.78% in that time.

Wall Street will be looking for positivity from OXY as it approaches its next earnings report date. This is expected to be February 27, 2020. In that report, analysts expect OXY to post earnings of $0.14 per share. This would mark a year-over-year decline of 88.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 33.93% from the year-ago period.

Any recent changes to analyst estimates for OXY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 9.6% higher. OXY is currently a Zacks Rank #3 (Hold).

In terms of valuation, OXY is currently trading at a Forward P/E ratio of 27.07. For comparison, its industry has an average Forward P/E of 16.19, which means OXY is trading at a premium to the group.

Also, we should mention that OXY has a PEG ratio of 5.41. 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 2.76 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 81, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.