Occidental Petroleum's Price Target Raised Amid Weak Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 14 2024
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Should l Buy OXY?
Source: Yahoo Finance
Occidental Petroleum's stock fell 5.02% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.73% and the S&P 500 down 1.20%.
Analysts at Piper Sandler raised Occidental Petroleum's price target from $46 to $47 while maintaining a Neutral rating, citing expectations for strong Q4 results despite challenges from weak oil and gas prices. BofA also increased its price target for Occidental from $44 to $45, highlighting geopolitical factors affecting crude prices, indicating a growing focus on the oil and gas sector.
The adjustments in price targets suggest that while analysts see potential in Occidental, the company faces significant headwinds from the current market conditions, particularly in oil prices, which could impact its performance in the near term.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to rise
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 45.940
Low
38.00
Averages
47.27
High
64.00
Current: 45.940
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Occidental Petroleum Q4 Earnings Expectations Decline
- Earnings Expectations: Occidental Petroleum is set to announce its Q4 earnings on February 18, with Wall Street expecting an EPS of $0.18, a 77.5% year-over-year decline, and revenue of $5.59 billion, down 18.3%, reflecting weaker commodity pricing and lower production realizations.
- Performance History: Over the past two years, Occidental has beaten EPS estimates 100% of the time, yet it has only surpassed revenue estimates in 25% of those quarters, indicating challenges in revenue growth amidst declining market conditions.
- Revision Trends: Ahead of the earnings report, EPS revisions have trended negatively with 16 downward and 2 upward adjustments in the last three months, while revenue forecasts have also been trimmed, signaling tempered expectations from the market.
- Debt Management: The company plans to use $6.5 billion from the $9.7 billion sale of its OxyChem chemicals arm to Berkshire Hathaway to reduce its debt, aiming to bring its principal debt below $15 billion, despite a 6.7% decline in share price over the past year.
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Occidental Petroleum Q4 Earnings Preview
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- Revenue Decline: The consensus estimate for Occidental's quarterly revenue stands at $5.62 billion, down from $6.84 billion in the previous year, highlighting the company's struggles in adapting to changing market conditions and the need for strategic adjustments.
- Business Sale Impact: On January 2, Occidental announced the completion of its sale of the chemical business, OxyChem, to Berkshire Hathaway, a move aimed at refocusing on core operations; while this may impact revenue in the short term, it is expected to enhance financial flexibility in the long run.
- Stock Price Movement: Occidental's shares fell by 0.3% to close at $45.94 on Tuesday, reflecting market caution ahead of the earnings report, prompting investors to closely monitor the potential impact of the results on the stock price.
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Occidental Petroleum Q4 Earnings Expectations Decline
- Earnings Expectations: Occidental Petroleum is set to announce its Q4 earnings on February 18, with Wall Street expecting an EPS of $0.18, a 77.5% year-over-year decline, and revenue of $5.59 billion, down 18.3%, reflecting weaker commodity pricing and lower production realizations.
- Performance History: Over the past two years, Occidental has beaten EPS estimates 100% of the time, yet it has only surpassed revenue estimates in 25% of those quarters, indicating challenges in revenue growth amidst declining market conditions.
- Revision Trends: Ahead of the earnings report, EPS revisions have trended negatively with 16 downward and 2 upward adjustments in the last three months, while revenue forecasts have also been trimmed, signaling tempered expectations from the market.
- Debt Management: The company plans to use $6.5 billion from the $9.7 billion sale of its OxyChem chemicals arm to Berkshire Hathaway to reduce its debt, aiming to bring its principal debt below $15 billion, despite a 6.7% decline in share price over the past year.
See More
Occidental Petroleum Q4 Earnings Preview
- Earnings Release Date: Occidental Petroleum is set to release its Q4 earnings after the market closes on February 18, with analysts expecting earnings per share to drop to 18 cents from 80 cents a year ago, indicating significant profitability challenges for the company.
- Revenue Decline: The consensus estimate for Occidental's quarterly revenue stands at $5.62 billion, down from $6.84 billion in the previous year, highlighting the company's struggles in adapting to changing market conditions and the need for strategic adjustments.
- Business Sale Impact: On January 2, Occidental announced the completion of its sale of the chemical business, OxyChem, to Berkshire Hathaway, a move aimed at refocusing on core operations; while this may impact revenue in the short term, it is expected to enhance financial flexibility in the long run.
- Stock Price Movement: Occidental's shares fell by 0.3% to close at $45.94 on Tuesday, reflecting market caution ahead of the earnings report, prompting investors to closely monitor the potential impact of the results on the stock price.
See More
Stock Movers: Nvidia, Meta, Palo Alto, Apple, Sandisk, Cadence Design, and Others
- Stock Market Movement: Stock futures were rising on Wednesday as investors showed renewed interest in tech shares.
- Investor Behavior: The increase in stock futures was attributed to investors buying the dip following a recent selloff.
See More
Market Preview: Earnings Reports from Major Companies Ahead
- Earnings Reports: Carvana, DoorDash, and eBay are set to release their earnings on February 18, with particular attention on Carvana's sales growth amidst a busy market day.
- Booking Holdings Performance: Analysts expect Booking Holdings to report a 12% revenue growth in Q4, driven by stable global leisure demand and the expansion of alternative accommodations, while management must address the potential threat from AI travel planning tools.
- Energy Sector Update: Occidental Petroleum is announcing its Q4 results, with analysts predicting stable production from its core US onshore assets despite declining oil prices, which may pressure earnings and free cash flow.
- Macro Economic Data: The Federal Reserve will release minutes from its January FOMC meeting, with market participants looking for clues on inflation and labor market policies, while housing starts are forecasted at an annualized rate of 1.31 million and building permits at 1.4 million, indicating the impact of elevated rates on the housing market.
See More
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- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
See More
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- New Investment Disclosure: Berkshire Hathaway disclosed a new position of 5,065,744 shares in The New York Times Co (NYSE:NYT) for Q4 2025, indicating a sustained interest in the media sector.
- Liberty Media Ecosystem Adjustment: In its 13F filing, Berkshire clarified its holdings within the restructured Liberty Media ecosystem, including 3,018,555 shares of Liberty Formula One (NASDAQ:FWONK), reflecting confidence in the racing business.
- Portfolio Changes Overview: The Q4 13F report revealed changes in Berkshire's existing stock holdings, particularly notable reductions in certain stocks, indicating a dynamic adjustment in its investment strategy.
- Apple Holdings Dynamics: Although Berkshire reduced its stake in Apple once again, it remains the largest position in its investment portfolio, demonstrating a long-term bullish outlook on the technology sector.
See More
