Occidental Petroleum Corporation (OXY), based in Houston, Texas, is a major player in the global oil and gas industry. With a market cap of $54.01 billion, a significant market presence, and a diverse portfolio, OXY explores and produces oil, natural gas, and petrochemicals. Committed to sustainability and environmental stewardship, OXY invests in cutting-edge technologies and practices to reduce its environmental footprint and enhance the safety and well-being of its employees and the communities it serves.
Companies valued at $10 billion or more are generally considered "large-caps," and Occidental Petroleum fits this criterion perfectly, signifying its substantial size, stability, and influence in the energy sector. OXY continually advances the energy industry, focusing on responsible oil and gas extraction practices and cutting-edge technologies to enhance production while minimizing environmental impact.
OXY shares are trading 14.4% below their 52-week high of $71.18, which they hit on Apr.12. OXY has seen a 4.7% decline over the last three months compared to the 1.6% decline seen in the Dow Jones Industrial Average Index ($DOWI) during the same period.
In the long term, OXY is up 2% on a YTD basis and the shares have gained 6% over the past 52 weeks. In comparison, the Dow is up 3.9% in 2024 and 15.3% over the past year.
To confirm the recent bearish price trend, OXY has been trading below its 200-day moving average since early May and below its 50-day moving average recently.
Occidental Petroleum reported its Q1 results on May 7. The company reported a profit of $888 million, translating to a net income of $0.75 per share. Adjusted for discontinued operations, earnings were $0.65 per share, surpassing Wall Street expectations of $0.56 per share. However, the company's revenue of $6.01 billion fell short of the $6.66 billion forecasted by analysts. Following the release of these results, the stock declined by over 2.1% in the next trading session.
Highlighting the contrast in performance, one of OXY's industry participants, Chevron Corporation (CVX), has outperformed both OXY and DOWI, with a 4.1% gain on a YTD basis.
Analysts are optimistic about OXY's prospects despite its recent underperformance compared to DOWI. The stock has a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target of $72.05 reflects an 18.3% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
