Occidental Petroleum Corporation (OXY:NYE) Analysts rate as a Buy, $74 target

STA Research
by: STA Research
Occidental Petroleum Corporation

Based on the OXY stock forecast from 17 analysts, the average analyst OXY stock price target is USD 73.78 over the next 12 months. Occidental Petroleum Corporation’s average analyst rating is Buy. Stock Target Advisor’s own OXY stock forecast is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, Occidental Petroleum stock price was USD 65.06Occidental Petroleum stock price has changed by +2.99% over the past week, +4.62% over the past month and +146.16% over the last year.

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow:

OXY stock forecast has shown positive total cash flow in the most recent four quarters.

Positive free cash flow:

OXY stock forecast has shown positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

OXY stock forecast has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if Occidental Petroleum stock price is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of Occidental Petroleum stock price over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value:

Occidental Petroleum stock price is trading high compared to its peers median on a price to book value basis.

Poor capital utilization:

OXY stock forecast has shown below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

OXY stock forecast has shown below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the occidental petroleum news, and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Dividend Growth:

OXY stock forecast has shown below median OXY stock dividend growth in the previous 5 years compared to its sector.

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