Valued at a market cap of $44.3 billion, Occidental Petroleum Corporation (OXY) is an integrated oil and gas company that engages in the acquisition, exploration, and development of oil and gas properties. The Houston, Texas-based company is also a producer of a variety of basic chemicals, petrochemicals, polymers, and specialty chemicals.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and OXY fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the oil and gas industry. The company excels in enhanced oil recovery (EOR) techniques, maximizing production efficiency and extending the life of mature oil fields. Occidental is also a leader in carbon capture and storage (CCS) initiatives, positioning itself for sustainability and energy transition efforts while maintaining strong cash flow generation and shareholder returns.
This energy giant is currently trading 33.6% below its 52-week high of $71.18, reached on Apr. 12, 2024. Shares of OXY have declined marginally over the past three months, outpacing the broader S&P 500 Index’s ($SPX) 5.3% decline during the same time frame.
However, on a YTD basis, shares of OXY are down 4.4%, compared to SPX’s 1.9% downtick over the same time frame. Plus, in the longer term, OXY has fallen 22.6% over the past 52 weeks, considerably lagging behind SPX’s 11.9% return.
To confirm its bearish trend, OXY has been trading below its 200-day moving average since late July 2024 and has remained below its 50-day moving average since late February.
Shares of OXY climbed 4.4% the day following its Q4 earnings release on Feb. 18 despite delivering mixed results. The company’s quarterly earnings rose 8.1% year-over-year to $0.80 per share, surpassing Wall Street expectations by an impressive 19.4% margin. Additionally, Occidental reported strong production levels, reaching 1.5 million barrels of oil equivalent per day. Investor confidence was further boosted by a 9% hike in the company’s quarterly dividend.
On the downside, its revenue of $6.8 billion decreased by 9.2% year over year due to weaker performance in its Chemical and Midstream & Marketing segments. The top-line figure missed the consensus estimates by 4.3%.
OXY has outpaced its rival, APA Corporation (APA), which declined 38.3% over the past 52 weeks and 18.4% on a YTD basis.
Despite Occidental’s recent outperformance relative to the S&P 500, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 25 analysts covering it, and the mean price target of $60.29 suggests a modest 27.6% premium to its current levels.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
