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

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Occidental Petroleum (OXY - Free Report) closed at $57.79 in the latest trading session, marking a -0.55% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.36%.

Coming into today, shares of the oil and gas exploration and production company had gained 3.49% in the past month. In that same time, the Oils-Energy sector gained 8.66%, while the S&P 500 gained 5.64%.

Investors will be hoping for strength from Occidental Petroleum as it approaches its next earnings release. In that report, analysts expect Occidental Petroleum to post earnings of $1.42 per share. This would mark year-over-year growth of 1046.67%. Meanwhile, our latest consensus estimate is calling for revenue of $7.27 billion, up 32.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $30.14 billion. These totals would mark changes of +122.75% and +14.54%, 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. Within the past 30 days, our consensus EPS projection has moved 27.73% higher. Occidental Petroleum currently has a Zacks Rank of #2 (Buy).

Investors should also note Occidental Petroleum's current valuation metrics, including its Forward P/E ratio of 10.24. This valuation marks a discount compared to its industry's average Forward P/E of 11.8.

Also, we should mention that OXY has a PEG ratio of 0.3. 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. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.47 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 25, which puts it in the top 10% 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.

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


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