Industry Overview: The Zacks Oil & Gas US Integrated industry includes companies involved in upstream and midstream energy operations, with a focus on oil and natural gas exploration, production, and transportation, while also engaging in downstream refining activities.
Current Trends: The EIA predicts weaker oil prices, which may hinder production growth as companies prioritize shareholder returns over new investments. Additionally, there is a growing shift towards renewable energy, potentially reducing demand for fossil fuels.
Market Performance: The industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500, declining 5% over the past year, while the sector and S&P 500 gained 9% and 19.9%, respectively.
Valuation Insights: The industry is currently trading at an EV/EBITDA ratio of 4.64X, significantly lower than the S&P 500's 18.47X, indicating a challenging financial environment for debt-laden oil and gas companies.
Wall Street analysts forecast OXY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OXY is 47.27 USD with a low forecast of 38.00 USD and a high forecast of 64.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast OXY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OXY is 47.27 USD with a low forecast of 38.00 USD and a high forecast of 64.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
9 Hold
3 Sell
Hold
Current: 43.510
Low
38.00
Averages
47.27
High
64.00
Current: 43.510
Low
38.00
Averages
47.27
High
64.00
Barclays
Equal Weight
maintain
$50
2026-01-21
New
Reason
Barclays
Price Target
$50
AI Analysis
2026-01-21
New
maintain
Equal Weight
Reason
Barclays reinstated coverage of Occidental with an Equal Weight rating and $50 price target following close of the OxyChem divestiture. The divestiture accelerates Occidental's debt reduction, but at the cost of a free cash flow, which had "provided some insulation to the energy commodity cycle," the analyst tells investors in a research note.
JPMorgan
Underweight
downgrade
$44 -> $42
2026-01-20
New
Reason
JPMorgan
Price Target
$44 -> $42
2026-01-20
New
downgrade
Underweight
Reason
JPMorgan lowered the firm's price target on Occidental to $42 from $44 and keeps an Underweight rating on the shares. The firm adjusted ratings and targets in the integrated oils sector as part of its 2026 outlook. The outlook for the group continues to shaped by supply side risks for oil, but a more constructive outlook downstream, the analyst tells investors in a research note. Amid the rise in geopolitical risks, JPMorgan says the U.S. majors screen more attractive than the Canadian integrateds. It cites relative valuations for the rating changes.
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Scotiabank
Sector Perform
downgrade
$47 -> $46
2026-01-16
Reason
Scotiabank
Price Target
$47 -> $46
2026-01-16
downgrade
Sector Perform
Reason
Scotiabank lowered the firm's price target on Occidental to $46 from $47 and keeps a Sector Perform rating on the shares. The firm is updating its price targets for U.S. Integrated Oil, Refining, and Large Cap Exploration & Production, E&P, stocks under its coverage, the analyst tells investors. Scotiabank expects earnings for the quarter to be straightforward due to the absence of major winter weather disruptions. Additionally, looking ahead, the firm expects investors to focus on whether recent market turmoil will cause changes to 2026 guidance and if any E&P companies will adopt cost reduction programs.
UBS
Neutral
downgrade
$45 -> $43
2025-12-12
Reason
UBS
Price Target
$45 -> $43
2025-12-12
downgrade
Neutral
Reason
UBS lowered the firm's price target on Occidental to $43 from $45 and keeps a Neutral rating on the shares. After three years of limited gains, the Energy sector appears positioned for a stronger 2026, supported by improving oil and natural gas outlooks, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations, the analyst tells investors in a research note. Natural gas E&Ps are favored, though positive momentum is expected broadly across Oil E&Ps and OFS, UBS adds.
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. Its segments include oil and gas, 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 Company's 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. This segment also includes low-carbon venture businesses.
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.
