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

Zacks Equity Research

In the latest trading session, Occidental Petroleum (OXY) closed at $40.33, marking a -0.02% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the oil and gas exploration and production company had lost 9.59% over the past month. This has lagged the Oils-Energy sector's loss of 6.03% and the S&P 500's loss of 0.14% in that time.

Wall Street will be looking for positivity from OXY as it approaches its next earnings report date. This is expected to be November 4, 2019. On that day, OXY is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 70.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.29 billion, down 14.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $20.85 billion, which would represent changes of -44.11% and +10.43%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for OXY. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection has moved 5.97% lower. OXY is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, OXY is holding a Forward P/E ratio of 14.4. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.4.

Meanwhile, OXY's PEG ratio is currently 2.88. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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