Occidental Petroleum (OXY) closed the most recent trading day at $57.25, moving -2.7% from the previous trading session. This change lagged the S&P 500's 1.49% gain on the day. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 2.26%.
The stock of oil and gas exploration and production company has fallen by 4.01% in the past month, lagging the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
The investment community will be paying close attention to the earnings performance of Occidental Petroleum in its upcoming release. The company is forecasted to report an EPS of $1.37, showcasing a 114.06% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $6.61 billion, showing a 1.58% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.2 per share and a revenue of $26.89 billion, indicating changes of +180.54% and +5.71%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Occidental Petroleum. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.92% higher. Right now, Occidental Petroleum possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Occidental Petroleum is currently being traded at a Forward P/E ratio of 9.5. This expresses a discount compared to the average Forward P/E of 20.45 of its industry.
One should further note that OXY currently holds a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Integrated - United States industry stood at 1.8 at the close of the market yesterday.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).