Last Updated: 07 Nov 2024
Executive Summary
Occidental Petroleum Corporation (OXY) is a leading energy company with a strong financial performance and a positive outlook. The company's recent acquisition of Anadarko Petroleum Corporation has significantly increased its production and reserves, making it one of the largest oil and gas producers in the United States. OXY's shares are currently trading at $51.39, below the analyst target price of $63.24. The company's strong fundamentals and positive technical outlook suggest that it is a good investment for both short-term and long-term investors.
Company Overview
Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia as well as petrochemical manufacturing in the United States, Canada, and Chile. The company was founded in 1920 and is headquartered in Houston, Texas. OXY is a Fortune 500 company with a market capitalization of $48.06 billion.
Fundamental Analysis
OXY's financial performance has been strong in recent years. The company's revenue has grown from $20.1 billion in 2017 to $27.1 billion in 2022. Net income has also increased from $2.6 billion in 2017 to $4.1 billion in 2022. The company's earnings per share (EPS) have grown from $2.27 in 2017 to $3.94 in 2022.
OXY's balance sheet is also strong. The company has $12.2 billion in cash and equivalents and $17.1 billion in debt. The company's debt-to-equity ratio is 0.46, which is below the industry average.
Technical Analysis
OXY's stock price has been trending higher in recent months. The stock price broke above its 50-day moving average in March 2023 and has been trading above it since then. The stock price also broke above its 200-day moving average in May 2023 and has been trading above it since then. The relative strength index (RSI) is currently at 62, which is in the overbought territory. However, the moving average convergence divergence (MACD) is currently above its signal line, which is a bullish sign.
Short Term Outlook
The technical analysis suggests that OXY's stock price is likely to continue to trend higher in the short term. The stock price is above its 50-day and 200-day moving averages, and the RSI is in the overbought territory. The MACD is also above its signal line, which is a bullish sign.
Long Term Outlook
The long-term outlook for OXY is also positive. The company's strong financial performance and positive technical outlook suggest that it is a good investment for both short-term and long-term investors. The company's recent acquisition of Anadarko Petroleum Corporation has significantly increased its production and reserves, making it one of the largest oil and gas producers in the United States. The company is also well-positioned to benefit from the growing demand for energy.
Analyst Recommendations
The majority of analysts have a buy rating on OXY. The average analyst target price is $63.24, which is 23% above the current stock price. Three analysts have a strong buy rating on the stock, five analysts have a buy rating, 17 analysts have a hold rating, one analyst has a sell rating, and no analysts have a strong sell rating.
