1 Stock to Buy, 1 Stock to Sell This Week: Toast, Occidental Petroleum

As the investment landscape shifts, it's crucial for investors to stay informed and adapt their portfolios accordingly. This week, we'll examine two stocks: Toast (TOST), a cloud-based restaurant management platform, and Occidental Petroleum (OXY), an energy giant with a growing focus on renewable energy. Our analysis will be guided by recent performance, valuation, and expert opinions.

Toast (TOST): A Buy Opportunity

Toast has been on a tear, with its stock price more than doubling over the past 12 months. Despite this rally, the stock remains nearly 40% below its all-time high from November 2021, suggesting that there's still room for growth. Toast's strong growth rates, expansion into new markets, and relatively low valuation make it an attractive buy opportunity.

*Recent Performance:* Toast's revenue growth has stabilized, with analysts expecting 28% growth in 2024, 23% in 2025, and 20% in 2026. Its adjusted EBITDA is expected to turn profitable in 2024, with growth of 493% for the full year.

*Valuation:* Toast's enterprise value is 3.5 times next year's sales, and its EV/EBITDA ratio is 10,882.16. While these metrics are high, they reflect the company's rapid growth and strong long-term prospects.

*Expert Opinions:* Analysts have a consensus rating of "Buy" for Toast, with an average price target of $36.09, which is -10.87% lower than the current price. However, Toast's insiders have sold more shares than they bought over the past 12 months, which could limit the company's upside potential.

Occidental Petroleum (OXY): A Sell Opportunity

Occidental Petroleum's stock performance has been volatile, with its total return over the past 12 months at -20.41% compared to the S&P 500's 26.21%. While the company has made strides in investing in renewable energy, its high valuation and exposure to volatile oil prices make it a less attractive investment compared to Toast.

*Recent Performance:* Occidental Petroleum's revenue growth has been positive, but its adjusted EBITDA is expected to turn profitable in 2024, with growth of 493% for the full year. However, its high valuation and exposure to volatile oil prices make it a less attractive investment compared to Toast.

*Valuation:* Occidental Petroleum's enterprise value is 4.67 times next year's sales, and its EV/EBITDA ratio is 17.90. While these metrics are lower than Toast's, they still suggest that the stock may be overvalued compared to its peers.

*Expert Opinions:* Analysts have a mixed view on Occidental Petroleum, with some expressing concerns about its high valuation and exposure to volatile oil prices.



In conclusion, Toast's strong growth rates, expansion into new markets, and relatively low valuation make it an attractive buy opportunity, while Occidental Petroleum's high valuation and exposure to volatile oil prices make it a less attractive investment. Investors should consider these factors when evaluating the long-term prospects of these stocks and adjust their portfolios accordingly.