Occidental Petroleum Stock: Is Wall Street Bullish or Bearish?
Valued at a market cap of $36.5 billion, Occidental Petroleum Corporation (OXY) is an integrated oil and gas company that acquires, explores, and develops oil and gas properties. The Houston, Texas-based company also manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, and potassium chemicals to name a few.
This energy company has considerably underperformed the broader market over the past 52 weeks. Shares of OXY have declined 39.7% over this time frame, while the broader S&P 500 Index ($SPX) has surged 10.2%. Moreover, on a YTD basis, the stock is down 21.5% compared to SPX’s 3.9% loss.
Narrowing the focus, OXY has also lagged behind the SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 24.8% decline over the past 52 weeks and 14.7% fall on a YTD basis.
On Feb. 18, OXY released its mixed Q4 results. Shares of the company soared 4.4% in the following trading session as its adjusted EPS of $0.80 grew 8.1% from the year-ago quarter and surpassed the consensus estimates by a notable margin of 19.4%. Adding to the positives, its free cash flow before working capital advanced 27.5% year-over-year to $1.4 billion. Moreover, its total average production improved 18.6% year-over-year, reaching 1,463 thousand barrels of oil equivalent per day (Mboed). However, its revenue declined 9.2% year-over-year to $6.8 billion, missing forecasts by 4.2%. Lower pricing coupled with weaker chemical and midstream & marketing segments sales impacted its top line.
For fiscal 2025, ending in December, analysts expect OXY’s EPS to decline 28.6% year over year to $2.47. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Hold” which is based on three “Strong Buy,” two “Moderate Buy,” 17 “Hold,” and two “Strong Sell” ratings.
This configuration is less bullish than a month ago, with five analysts suggesting a “Strong Buy” rating.
On Apr. 22, Susquehanna maintained a “Positive” rating on OXY but lowered its price target to $55, which indicates a 41.7% potential upside from the current levels.
The mean price target of $48.25 represents a 24.3% premium from OXY’s current price levels, while the Street-high price target of $63 suggests an upside potential of 62.3%.
On the date of publication, Neharika Jain 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.