2024-01-29 15:11:19 ET
Summary
- Occidental Petroleum stock has underperformed the S&P 500 recently following the overall underperformance of the energy sector.
- The oil market is influenced by geopolitical risks and well-supplied oil stocks, leading to indecision among investors. But I think it's a temporary headwind for OXY and the energy sector.
- Occidental's recent results reflect lower earnings amid decreased commodity prices. Despite this, OXY's stable debt and liquidity ratios suggest resilience. I anticipate a production expansion amid oil prices stabilizing.
- Even after adjusting for the acquisition of CrownRock, the OXY stock is 25% undervalued, according to my calculations.
- Despite risks and uncertainty, and despite being underweighted by hedge fund managers, I see these moments as opportunities for creating winning stock positions. OXY is a 'Buy'
Intro & Thesis
I have written 5 articles on Occidental Petroleum Corporation ( OXY ) stock since becoming an active analyst on Seeking Alpha, but unfortunately for me, the stock has remained flat since early last year when I became bullish....
Read the full article on Seeking Alpha
For further details see:
Occidental Petroleum: Why I Believe The Stock Is A Steal Today