OXY Should I Buy
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Occidental Petroleum Corp (OXY) is not an ideal buy for a beginner investor with a long-term strategy at this moment. The stock shows mixed signals, with neutral technical indicators, declining financial performance, and a lack of strong positive catalysts. While debt reduction and potential cash flow improvements are positives, weak oil prices and declining revenue and earnings suggest limited upside in the near term. Analysts' ratings and price targets also indicate a neutral to slightly bearish sentiment.
The technical indicators are neutral to slightly bullish. The MACD is positive but contracting, RSI is neutral at 47.839, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot point of 45.607, with resistance at 47.28 and support at 43.934.
Debt reduction through the sale of OxyChem for $9.7 billion.
Rising oil prices and improved cash flow potential for
Fixed-fee structure in the Delaware Basin contract, expected to save costs.
Weak oil and gas prices, with oversupply concerns and soft global demand.
Declining financial performance in Q3 2025, with revenue down 7.65% YoY and net income down 31.49% YoY.
Analysts' mixed ratings and price target reductions, with most targets in the $42-$50 range, indicating limited upside.
In Q3 2025, Occidental's revenue dropped to $6.62 billion (-7.65% YoY), net income fell to $657 million (-31.49% YoY), and EPS decreased to $0.65 (-33.67% YoY). Gross margin also declined to 32.62% (-14.72% YoY).
Analysts have mixed views on Occidental. Recent ratings include Neutral and Equal Weight from Piper Sandler, BofA, and Barclays, with price targets ranging from $42 to $50. JPMorgan and UBS have downgraded the stock, citing oversupply risks and weak oil prices. Positive sentiment is limited to long-term natural gas demand growth.
