Jim Cramer -- Will Occidental Earnings Push Shares Up or Down?
Occidental Petroleum (OXY) - Get Report is scheduled to report earnings Thursday before the open, and TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, wants to know what effect they will have on the AAP holding's stock price.
Cramer said it won't surprise him to see the stock decline on the results because that is what has happened to a lot of other energy names at a time of low oil prices. If West Texas Intermediate prices are up and the earnings are good, shares of Occidental may get a boost, he explained. Energy stocks "are all hostage to the price of oil." Cramer said.
The company has a very attractive dividend yield and has the funds to continue paying it, he added. Other reasons Cramer likes Occidental include its solid overall growth and its attractive chemicals business.
That's why if the earnings cause the stock to pull back, Cramer won't be upset -- it will allow him to buy more and hold it for the long term. "Occidental remains my favorite of the whole group," he asserted.
At the time of publication, Cramer's Action Alerts PLUS had no a long position in OXY.
