In the latest trading session, Occidental Petroleum (OXY) closed at $51.80, marking a -1.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.58%.
Heading into today, shares of the oil and gas exploration and production company had gained 5.25% over the past month, outpacing the Oils-Energy sector's loss of 1.84% and the S&P 500's gain of 1.36% in that time.
Investors will be hoping for strength from OXY as it approaches its next earnings release, which is expected to be July 31, 2019. In that report, analysts expect OXY to post earnings of $0.99 per share. This would mark a year-over-year decline of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $4.43 billion, up 8.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.46 per share and revenue of $16.62 billion. These totals would mark changes of -30.94% and -11.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for OXY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 8.98% lower within the past month. OXY is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, OXY is currently trading at a Forward P/E ratio of 15.18. Its industry sports an average Forward P/E of 14.72, so we one might conclude that OXY is trading at a premium comparatively.
Also, we should mention that OXY has a PEG ratio of 3.04. 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. OXY's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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