Occidental Petroleum (OXY) closed the most recent trading day at $41.23, moving -2.71% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.
The oil and gas exploration and production company's stock has dropped by 0.12% in the past month, falling short of the Oils-Energy sector's gain of 1.8% and the S&P 500's gain of 0.55%.
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%. Our most recent consensus estimate is calling for quarterly revenue of $6 billion, down 12.17% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.25 per share and revenue of $26.05 billion. These totals would mark changes of -34.97% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Occidental Petroleum. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, there's been a 17.6% fall in the Zacks Consensus EPS estimate. Occidental Petroleum is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Occidental Petroleum is at present trading with a Forward P/E ratio of 35.12. This denotes a premium relative to the industry average Forward P/E of 16.7.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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
