Back to top

Image: Bigstock

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

Read MoreHide Full Article

Occidental Petroleum (OXY - Free Report) closed at $49.17 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the oil and gas exploration and production company had lost 1.83% over the past month, lagging the Oils-Energy sector's gain of 5.91% and the S&P 500's gain of 8.19% in that time.

Wall Street will be looking for positivity from OXY as it approaches its next earnings report date. In that report, analysts expect OXY to post earnings of $1.07 per share. This would mark a year-over-year decline of 2.73%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 10.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.72 per share and revenue of $17.11 billion, which would represent changes of -25.75% and -9.38%, respectively, from the prior year.

Any recent changes to analyst estimates for OXY should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.94% lower. OXY is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that OXY has a Forward P/E ratio of 13.1 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.28.

Investors should also note that OXY has a PEG ratio of 2.62 right now. 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 1.53 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Occidental Petroleum Corporation (OXY) - free report >>

Published in