OXY - Why Occidental Petroleum Callon Petroleum and Kosmos Energy Rallied Over 70% Each in November
Shares of $14-billion-market-cap exploration and production company Occidental Petroleum (NYSE: OXY) rose a dramatic 72% in November, according to data from S&P Global Market Intelligence . That massive increase, however, was smaller than what relatively-tiny $740-million-market-cap offshore driller Kosmos Energy (NYSE: KOS) saw, with its stock rallying 77%. Even smaller Callon Petroleum (NYSE: CPE) , with a $420 million market cap, witnessed a nearly-82% share price gain in the month. Those are astronomical numbers for such a short period of time -- but not a whole lot has actually changed at these energy companies .
The big story in November was the release of upbeat coronavirus vaccine news. Specifically, vaccine offerings from Pfizer and BioNTech , AstraZeneca , and Moderna all achieved high rates of success in fighting off the scourge behind the global pandemic. Investors, seeing these results, looked forward to a time when the world would move past the coronavirus. And thus names that were facing material headwinds because of COVID-19 rallied. To some degree that makes complete sense, but investors also have a habit of letting their emotions get ahead of the actual events taking place on the ground.
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Why Occidental Petroleum, Callon Petroleum, and Kosmos Energy Rallied Over 70% Each in November