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

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Occidental Petroleum (OXY - Free Report) closed at $38.68 in the latest trading session, marking a +0.94% move from the prior day. This change outpaced the S&P 500's 0.04% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Prior to today's trading, shares of the oil and gas exploration and production company had gained 0.47% over the past month. This has lagged the Oils-Energy sector's gain of 1.63% and the S&P 500's gain of 2.48% in that time.

Wall Street will be looking for positivity from OXY as it approaches its next earnings report date. The company is expected to report EPS of $0.18, down 85.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.30 billion, up 31.17% from the year-ago period.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $20.69 billion. These results would represent year-over-year changes of -64.07% and +9.55%, respectively.

It is also important to note the recent changes to analyst estimates for OXY. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 21.25. Its industry sports an average Forward P/E of 17.52, so we one might conclude that OXY is trading at a premium comparatively.

Investors should also note that OXY has a PEG ratio of 4.25 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. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 2.18 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 76, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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