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

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Occidental Petroleum (OXY) closed at $55.68 in the latest trading session, marking a -1.99% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.

Coming into today, shares of the oil and gas exploration and production company had lost 11.18% in the past month. In that same time, the Oils-Energy sector lost 4.86%, while the S&P 500 lost 8.32%.

Wall Street will be looking for positivity from Occidental Petroleum as it approaches its next earnings report date. In that report, analysts expect Occidental Petroleum to post earnings of $2.88 per share. This would mark year-over-year growth of 800%. Our most recent consensus estimate is calling for quarterly revenue of $9.64 billion, up 60.32% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $10.36 per share and revenue of $38 billion. These results would represent year-over-year changes of +306.27% and +44.41%, respectively.

It is also important to note the recent changes to analyst estimates for Occidental Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. The Zacks Consensus EPS estimate has moved 6.47% higher within the past month. Occidental Petroleum currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 5.49. This valuation marks a discount compared to its industry's average Forward P/E of 12.13.

It is also worth noting that OXY currently has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.36 at yesterday's closing price.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.

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


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