Occidental Petroleum: Stock Struggles Amid Broader Market Gains
Occidental Petroleum Corporation (OXY), based in Houston, Texas, operates as an integrated oil and gas company focused on acquiring, exploring, and developing energy resources. With a market capitalization of $45.6 billion, OXY has a global presence, conducting operations in the United States, the Middle East, and North Africa.
Stock Performance: A Year of Decline
In the past year, Occidental’s stock has underperformed relative to the broader market. Over 52 weeks, OXY’s share price has decreased by 16.8%, in contrast to the S&P 500 Index’s ($SPX) impressive gain of 35.8%. Year-to-date in 2024, OXY has fallen by 13.9%, while the S&P 500 has increased by 24.3%.
Comparative Analysis: OXY Vs. Industry ETFs
When examining closely, OXY’s decline of 16.8% over the past year is notably worse than the SPDR Oil & Gas Exploration & Production ETF’s (XOP) slight dip of 2.6%. Year-to-date, OXY also lags behind the ETF, which has risen by 2.2%.
Dividend Announcement and Stock Movement
On November 6, Occidental announced a regular quarterly dividend of $0.22 per share on common stock, scheduled to be paid on January 15, 2025. Following the news, OXY shares experienced a 2% increase.
Additionally, on November 4, OXY’s stock rose by more than 2%, fueled by a surge in energy stocks as WTI crude oil prices climbed over 2% to reach a weekly high.
Future Earnings and Analyst Ratings
Looking ahead, analysts project that Occidental’s earnings per share (EPS) for the fiscal year ending in December will drop by 11.1%, reaching $3.29. However, the company has consistently either met or beaten consensus EPS estimates over the last four quarters.
Among 24 analysts covering OXY, the consensus rating is a “Moderate Buy,” consisting of six “Strong Buy” ratings, one “Moderate Buy,” 16 “Holds,” and one “Strong Sell.” This sentiment reflects a slight decline in bullishness from two months ago, when seven analysts had rated it a “Strong Buy.”
Price Target Adjustments
On October 18, Susquehanna Community Financial, Inc. (SQCF) adjusted Occidental Petroleum’s price target from $78 to $77. This revised target remains the highest on Wall Street and suggests a potential upside of 49.8%. Currently, OXY’s average price target stands at $63.84, indicating a premium of 24.2% from its current trading levels.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
