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Occidental Petroleum (OXY) Stock Drops Despite Market Gains: Important Facts to Note

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Occidental Petroleum (OXY - Free Report) closed the latest trading day at $46.11, indicating a -0.38% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.49%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 1.22%.

Shares of the oil and gas exploration and production company witnessed a loss of 4.79% over the previous month, beating the performance of the Oils-Energy sector with its loss of 6.96% and the S&P 500's loss of 8.15%.

The investment community will be paying close attention to the earnings performance of Occidental Petroleum in its upcoming release. The company's earnings per share (EPS) are projected to be $0.88, reflecting a 35.38% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.19 billion, reflecting a 19.55% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $29.52 billion, which would represent changes of -0.87% and +9.84%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Occidental Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. Occidental Petroleum presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Occidental Petroleum is currently exchanging hands at a Forward P/E ratio of 13.5. This expresses a discount compared to the average Forward P/E of 13.55 of its industry.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 12% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.


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