Top 500 by Volume Strategy Surpasses 166 Return as OXY Slides on Earnings Jitters

On July 31, 2025, Occidental Petroleum (OXY) closed at $43.94, reflecting a 1.06% decline, with a trading volume of $370 million. The stock’s recent performance underscores investor caution ahead of its August 6 earnings report, where analysts anticipate a significant year-over-year earnings drop to $0.28 per share and a 5.83% revenue decline to $6.48 billion. Despite a 6.07% monthly gain, the stock trades at a premium to its industry’s average forward P/E ratio of 17.54, signaling mixed sentiment about its valuation and growth prospects.

Analysts highlight the upcoming earnings report as a critical juncture, with a Zacks Rank of #3 (Hold) indicating limited near-term momentum. The stock’s industry ranks in the bottom 8% of all sectors, reflecting broader challenges in the integrated oil and gas space. However, Occidental’s strategic partnership with Amazon on a 10-year carbon removal credit agreement has drawn attention, potentially positioning the company as a leader in decarbonization efforts. This move aligns with long-term industry shifts toward sustainability, though its immediate financial impact remains unproven.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, generating an excess return of 137.53%. The strategy has shown compelling performance consistently over recent years, highlighting its effectiveness in capturing market momentum while managing risk.