Occidental Petroleum Corporation Stock Buy Recommendation Reiterated (OXY)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Occidental Petroleum Corporation (NYSE: OXY) has been reiterated by TheStreet Ratings as a buy with a ratings score of B .

Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • OCCIDENTAL PETROLEUM CORP's earnings per share declined by 22.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, OCCIDENTAL PETROLEUM CORP increased its bottom line by earning $8.15 versus $5.61 in the prior year. For the next year, the market is expecting a contraction of 14.0% in earnings ($7.01 versus $8.15).
  • In its most recent trading session, OXY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 22.4% when compared to the same quarter one year ago, dropping from $1,771.00 million to $1,375.00 million.

Occidental Petroleum Corporation engages in the exploration and production of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. Occidental has a market cap of $65.15 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 11, below the S&P 500 P/E ratio of 17.7. Shares are down 14.2% year to date as of the close of trading on Tuesday.

You can view the full Occidental Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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