Should i buy, sell or hold OXY today and what is the recommended price ?
11/4/2024 04:27pm
**Neutral stance on OXY** is recommended based on the following analysis:
1. **Recent Performance and Market Sentiment**:
- OXY's stock has experienced a decline, with a 1-week percentage change of -3.9% and a 1-month percentage change of -7.24%, indicating a recent downturn in the stock's price.
- The stock has a P/E(TTM) ratio of 12.8, a P/S ratio of 1.74, and a P/B ratio of 1.89, which are generally in line with the company's earnings and book value.
- The consensus rating is "Hold" with an average price target of $65.63, suggesting that analysts believe the stock has potential for modest growth.
2. **Financial Health and Growth Prospects**:
- OXY's financials show a net income growth rate of 36.05%, a revenue growth rate of 2.2%, and a diluted EPS growth rate of 37.33%, indicating strong growth potential.
- The company's net income has shown a robust increase, with a 3-year net income CAGR of 42.21%, and its diluted EPS has grown significantly, with a 3-year CAGR of 57.11%.
- However, the company's revenue growth has been relatively modest, with a 3-year revenue CAGR of 4.83%.
3. **Dividend and Valuation**:
- OXY has a dividend yield of 1.68%, which is modest but provides an income stream for investors.
- The company's valuation ratios suggest that it may be somewhat expensive compared to its earnings, but not excessively so given its growth prospects.
4. **Strategic Position and Recent Developments**:
- OXY has made significant investments in its Permian Basin operations, which could provide long-term growth opportunities.
- The company's financial performance has been strong, with a reported net income of $1.17 billion and a diluted EPS of $1.03 for the most recent quarter.
In conclusion, while OXY shows strong growth potential and is currently trading below its price target, the recent decline in its stock price and the modest revenue growth rate suggest caution. The recommended price is above the current trading price, with analysts forecasting an average price target of $65.63 over the next twelve months. Investors should consider their risk tolerance and investment horizon before making a decision.