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

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In the latest trading session, Occidental Petroleum (OXY - Free Report) closed at $58.01, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the oil and gas exploration and production company had lost 7.6% in the past month. In that same time, the Oils-Energy sector lost 18.41%, while the S&P 500 lost 1.89%.

Investors will be hoping for strength from Occidental Petroleum as it approaches its next earnings release, which is expected to be August 2, 2022. On that day, Occidental Petroleum is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 787.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.52 billion, up 58.36% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $10.33 per share and revenue of $36.93 billion. These results would represent year-over-year changes of +305.1% and +40.33%, respectively.

It is also important to note the recent changes to analyst estimates for Occidental Petroleum. These revisions help to show the ever-changing nature of 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.05% higher within the past month. Occidental Petroleum is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Occidental Petroleum has a Forward P/E ratio of 5.55 right now. Its industry sports an average Forward P/E of 10.55, so we one might conclude that Occidental Petroleum is trading at a discount comparatively.

Meanwhile, OXY's PEG ratio is currently 0.17. 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 0.29 at yesterday's closing price.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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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