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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 the most recent trading day at $45.26, moving +0.47% from the previous trading session. This change outpaced the S&P 500's 0.28% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Coming into today, shares of the oil and gas exploration and production company had gained 20.65% in the past month. In that same time, the Oils-Energy sector gained 7.72%, while the S&P 500 gained 3.31%.

Investors will be hoping for strength from OXY as it approaches its next earnings release. In that report, analysts expect OXY to post earnings of $0.13 per share. This would mark a year-over-year decline of 89.34%. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, up 31.32% from the year-ago period.

It is also important to note the recent changes to analyst estimates for OXY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.32% lower. OXY is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, OXY is holding a Forward P/E ratio of 34.39. Its industry sports an average Forward P/E of 20.41, so we one might conclude that OXY is trading at a premium comparatively.

Also, we should mention that OXY has a PEG ratio of 6.88. 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 3.3 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 105, putting it in the top 42% 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.

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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