Occidental Petroleum (OXY) Declines More Than Market: Some Information for Investors

In the latest close session, Occidental Petroleum (OXY) was down 3.7% at $45.49. This change lagged the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 2.04%.

Shares of the oil and gas exploration and production company have appreciated by 6.59% over the course of the past month, underperforming the Oils-Energy sector's gain of 16.6%, and outperforming the S&P 500's loss of 0.29%.

Analysts and investors alike will be keeping a close eye on the performance of Occidental Petroleum in its upcoming earnings disclosure. The company's earnings report is set to go public on February 18, 2026. The company is forecasted to report an EPS of $0.19, showcasing a 76.25% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.88 billion, indicating a 13.96% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.11 per share and revenue of $25.96 billion, which would represent changes of -39.02% and -3.41%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Occidental Petroleum. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 44.8% lower. Currently, Occidental Petroleum is carrying a Zacks Rank of #4 (Sell).

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 72.8. Its industry sports an average Forward P/E of 20.02, so one might conclude that Occidental Petroleum is trading at a premium comparatively.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 214, this industry ranks in the bottom 13% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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