Occidental Petroleum (OXY) Stock Sinks As Market Gains: What You Should Know
Occidental Petroleum (OXY) closed the most recent trading day at $26.78, moving -0.45% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%.
Heading into today, shares of the oil and gas exploration and production company had lost 13.98% over the past month, lagging the Oils-Energy sector's loss of 5.68% and the S&P 500's gain of 2.64% 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 August 3, 2021. The company is expected to report EPS of $0, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.85 billion, up 96.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.10 per share and revenue of $23.39 billion. These totals would mark changes of +102.56% and +45.66%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for OXY. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 115% higher. 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 265.68. For comparison, its industry has an average Forward P/E of 13.56, which means OXY is trading at a premium to the group.
Investors should also note that OXY has a PEG ratio of 12.37 right now. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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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