Occidental Petroleum Corporation
) is set to report its third-quarter 2013 results before the
market opens on Oct 29, 2013. Last quarter, the company posted a
negative earnings surprise of 1.86%. Let's see how things are
shaping up prior to this announcement.
CONOCOPHILLIPS (COP): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
OCCIDENTAL PET (OXY): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
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Factors to Consider this Quarter
Occidental's properties are located at different resource-rich
regions, both in domestic as well as international locations. The
diversified asset-base will likely enable the company to improve
its upcoming production level, thereby enhancing operating
results and boosting financial flexibility going forward.
On the flip side, Occidental is a crude oil-levered organization
with no refining operations. The company's performance primarily
depends on the crude oil price movement. We believe this reliance
on price trends will limit the company's growth projections.
In addition, we are cautious about risks associated with oil
exploration and production infrastructure damages, natural
calamities and political instability, which might impede
Occidental's future operations.
Our proven model does not conclusively show that Occidental is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Zacks
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. This is not the case here as you will see below.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at $1.90, while
the Zacks Consensus Estimate is pegged at $1.91. This comes to a
difference of -0.52% ESP.
Zacks Rank #3 (Hold):
Occidental's Zacks Rank #3 when combined with a negative ESP
makes surprise prediction difficult.
We also caution against stocks with Zacks Ranks #4 and 5 (Sell)
going into the earnings announcement, especially when the company
is experiencing negative estimate revisions.
Other Stocks to Consider
Here are some other organizations from the sector that you may
want to consider as our model shows that these have the right
combination of elements to post an earnings beat this quarter:
SM Energy Company
), Earnings ESP of +8.49% and Zacks Rank #2 (Buy).
), Earnings ESP of +1.37% and Zacks Rank #3 (Hold).
Marathon Oil Corporation
), Earnings ESP of +1.28% and Zacks Rank #3 (Hold).