2024-02-25 10:00:00 ET
Summary
- Warren Buffett's continued purchases of Occidental stock have propped up the price at $60, while other energy stocks have slumped.
- The energy company reported weak Q4'23 results, with revenues down 10% and EPS at $0.74, the second-lowest level since 2021.
- The stock trades at elevated levels of 20x EPS targets with limited upside, and investors should be cautious of the disconnect between the stock price and the current EPS trend.
With Warren Buffett and Berkshire Hathaway ( BRK.B ) continuing to load up on Occidental Petroleum ( OXY ), the stock has remained propped up around $60. Other energy stocks have slumped due to depressed energy prices, while OXY trades not far from the highs of the year. My investment thesis remains Bearish on the stock due to the elevated price and limited upside due to the ongoing pressure on energy prices....
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For further details see:
Occidental: Buffett Premium Isn't Warranted