Predicting Wall Street's Anticipated Value for Occidental Petroleum's Shares
Occidental Petroleum Corporation: Analysts Maintain a "Hold" Rating
Occidental Petroleum Corporation (OXY), an energy company engaged in the acquisition, exploration, development, and production of oil and gas properties, as well as the manufacturing and marketing of basic chemicals, has received a "Hold" rating from analysts, according to the latest consensus.
The 12-month price target for OXY stands at approximately $51.47, implying an upside of about 18.6% from its current price around $43.50. This target reflects a moderate level of optimism for OXY's stock over the next year, suggesting steady performance rather than aggressive growth or decline.
Analysts' price forecasts vary, with estimates ranging from a low of around $38 to a high near $75. The wide range indicates differing views on the company's potential, depending on market conditions and oil prices.
Over the past 52 weeks, OXY's shares have declined 27.1%, while on a year-to-date basis, the stock has dropped 11.1%, compared to the S&P 500 Index's 7.8% return. However, OXY's stock surged 6.2% following the company's Q1 results, which it reported on May 7.
The "Hold" rating is based on three "Strong Buy", two "Moderate Buy", 16 "Hold", and two "Strong Sell" ratings. The consensus rating is influenced by OXY's operations in oil and gas exploration, chemical production, and midstream marketing segments. The company reported solid earnings and cash flow in recent quarters, with ongoing efforts to improve efficiency projected to yield $350 million in cost savings for 2025.
OXY plans capital expenditures around $7 billion with production targets near 1.42 million barrels of oil equivalent per day, which supports its near-term growth and cash flow prospects. The company's dividend yield stands at approximately 2.2%, supported by earnings with payout ratios indicating manageable dividend coverage.
The company's price-to-earnings ratio is currently moderate, reflecting a balance between valuation and earnings expectations in the energy sector. OXY's overall revenue grew 13.9% year-over-year to $6.8 billion in Q1, while its adjusted EPS of $0.87 advanced 38.1% from the year-ago quarter.
For the current fiscal year, ending in December, analysts expect OXY's EPS to decline 33.8% year over year to $2.29.
It's worth noting that OXY has underperformed the SPDR S&P Oil & Gas Exploration & Production ETF's (XOP) with a 11.7% downtick over the past 52 weeks and a 3.2% loss on a year-to-date basis.
As always, it's important to remember that all information and data presented here are for informational purposes only. It does not constitute investment advice, and readers should consult their financial advisors before making any investment decisions.
[1] The Street [2] Yahoo Finance [3] Occidental Petroleum Corporation Investor Relations [4] MarketWatch
Disclosure: At the time of publication, Neharika Jain did not have positions in any of the securities mentioned in the article.
Investors in the finance industry might find it prudent to consider Occidental Petroleum Corporation, an energy company with interests in business segments such as oil and gas exploration, chemical production, and midstream marketing. Despite the current "Hold" rating, the company's stock offers an upside potential of around 18.6%, with a 12-month price target of approximately $51.47. Investors should weigh the varying price forecasts from analysts, which range from $38 to $75, while considering market conditions and oil prices.
