Occidental Petroleum (OXY) Dips More Than Broader Markets: What You Should Know

Occidental Petroleum (OXY) closed at $61.88 in the latest trading session, marking a -1.28% move from the prior day. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.19%.

Heading into today, shares of the oil and gas exploration and production company had lost 16.33% over the past month, lagging the Oils-Energy sector's loss of 4.09% and the S&P 500's loss of 10.24% in that time.

Occidental Petroleum will be looking to display strength as it nears its next earnings release. In that report, analysts expect Occidental Petroleum to post earnings of $2.87 per share. This would mark year-over-year growth of 229.89%. Meanwhile, our latest consensus estimate is calling for revenue of $9.91 billion, up 45.43% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.01 per share and revenue of $39.04 billion, which would represent changes of +331.76% and +48.35%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.01% higher. Occidental Petroleum currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 5.69. This valuation marks a discount compared to its industry's average Forward P/E of 10.35.

Meanwhile, OXY's PEG ratio is currently 0.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. OXY's industry had an average PEG ratio of 0.39 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.