Houston, Texas-based Occidental Petroleum Corporation (OXY) is an integrated oil and gas company. It engages in the acquisition, exploration, and development of oil and gas properties. With a market cap of $51.9 billion, Occidental Petroleum’s operations span the United States, the Middle East, and North Africa.
The oil and gas giant has significantly underperformed the broader market over the past year. Over the past 52 weeks, OXY stock has declined 8.2%, compared to the S&P 500 Index’s ($SPX) 18.2% returns. In 2024, OXY stock dipped 2%, while SPX gained 11.5% on a YTD basis.
Narrowing the focus, OXY's loss appears slightly less pronounced over the past 52 weeks compared to the S&P Oil & Gas Expl & Prod SPDR's (XOP) 8.3% dip. However, it lags behind the exchange-traded fund's marginal decline on a YTD basis.
Despite trailing the broader market over the past year, OXY stock rose 4.3% in the subsequent trading session after its Q2 earnings release on Aug. 7. The company reported a strong financial performance, with its net revenues growing by 1.7% annually and net income attributable to common shareholders soaring by a massive 64%. Moreover, it surpassed the EPS estimates by an impressive 33.8%.
For the current fiscal year, ending in December, analysts expect Occidental Petroleum's EPS to decline 2.7% year over year to $3.60. The company exceeded or matched the consensus EPS estimates in the past four quarters.
Among the 21 analysts covering the OXY stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than a month ago, with six analysts recommending a “Strong Buy.”
On Aug. 8, Stephens & Co. analyst Mike Scialla maintained an “Overweight” rating with a price target of $76.
OXY’s mean price target of $71.91 represents a premium of 22.9% from current price levels. The Street-high target of $85 indicates a potential upside of 45.2%.
On the date of publication, Aditya Sarawgi 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.
