In the latest close session, Occidental Petroleum (OXY) was up +2.6% at $41.46. This move outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
The oil and gas exploration and production company's stock has dropped by 4.56% in the past month, falling short of the Oils-Energy sector's loss of 1.02% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Occidental Petroleum in its forthcoming earnings report. In that report, analysts expect Occidental Petroleum to post earnings of $0.34 per share. This would mark a year-over-year decline of 57.5%. Simultaneously, our latest consensus estimate expects the revenue to be $6 billion, showing a 12.17% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.25 per share and a revenue of $26.05 billion, indicating changes of -34.97% and -3.09%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.35% higher within the past month. Occidental Petroleum is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Occidental Petroleum is currently exchanging hands at a Forward P/E ratio of 17.92. This denotes a discount relative to the industry average Forward P/E of 17.93.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Occidental Petroleum Corporation (OXY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
