3 Stocks Reiterated As A Buy: CVX, OXY, DD

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- TheStreet Ratings team reiterated 3 stocks with a buy rating on Monday based on 32 different data factors including general market action, fundamental analysis and technical indicators. The in-depth analysis of these ratings decisions goes as follows:

Chevron Corp:

Chevron (NYSE: CVX) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • CVX's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.9%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • CHEVRON CORP's earnings per share declined by 30.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CHEVRON CORP reported lower earnings of $11.09 versus $13.32 in the prior year. This year, the market expects an improvement in earnings ($11.19 versus $11.09).
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 31.9% when compared to the same quarter one year ago, falling from $7,245.00 million to $4,930.00 million.

Chevron Corporation, through its subsidiaries, is engaged in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. Chevron has a market cap of $224.6 billion and is part of the basic materials sector and energy industry. Shares are down 5.1% year-to-date as of the close of trading on Friday.

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Occidental Petroleum Corporation:

Occidental Petroleum Corporation (NYSE: OXY) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • OXY's revenue growth has slightly outpaced the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 0.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OXY's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for OCCIDENTAL PETROLEUM CORP is rather high; currently it is at 57.52%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.62% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $3,141.00 million or 11.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.15%.

Occidental Petroleum Corporation is engaged in the acquisition, exploration, and development 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 $74.8 billion and is part of the basic materials sector and energy industry. Shares are up 0.5% year-to-date as of the close of trading on Friday.

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E.I. du Pont de Nemours & Company:

E.I. du Pont de Nemours & Company (NYSE: DD) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • This stock has managed to rise its share value by 36.16% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DU PONT (E I) DE NEMOURS has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DU PONT (E I) DE NEMOURS increased its bottom line by earning $3.04 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($4.31 versus $3.04).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 101.1% when compared to the same quarter one year prior, rising from $92.00 million to $185.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.1%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has slightly increased to $5,512.00 million or 4.47% when compared to the same quarter last year. Despite an increase in cash flow, DU PONT (E I) DE NEMOURS's average is still marginally south of the industry average growth rate of 13.35%.

E. I. du Pont de Nemours and Company operates as a science and technology based company worldwide. Its Agriculture segment provides corn hybrid, soybean, canola, sunflower, sorghum, inoculants, wheat, and rice seed products under the Pioneer brand; and herbicides, fungicides, and insecticides. E.I. du Pont de Nemours has a market cap of $61.0 billion and is part of the basic materials sector and chemicals industry. Shares are up 2.5% year-to-date as of the close of trading on Friday.

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