Occidental Petroleum (OXY) Is Today's Pre-Market Laggard Stock

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.

Trade-Ideas LLC identified Occidental Petroleum ( OXY) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Occidental Petroleum as such a stock due to the following factors:

  • OXY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $447.7 million.
  • OXY traded 10,971 shares today in the pre-market hours as of 8:00 AM.
  • OXY is down 5.4% today from yesterday's close.

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More details on OXY:

Occidental Petroleum Corporation engages 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. The stock currently has a dividend yield of 3.3%. OXY has a PE ratio of 12.0. Currently there are 9 analysts that rate Occidental Petroleum a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Occidental Petroleum has been 5.2 million shares per day over the past 30 days. Occidental has a market cap of $66.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.54 and a short float of 1.3% with 1.56 days to cover. Shares are down 9.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Occidental Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The gross profit margin for OCCIDENTAL PETROLEUM CORP is rather high; currently it is at 54.80%. Regardless of OXY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OXY's net profit margin of 20.14% significantly outperformed against the industry.
  • OXY's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • OXY, with its decline in revenue, slightly underperformed the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OCCIDENTAL PETROLEUM CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • OCCIDENTAL PETROLEUM CORP's earnings per share declined by 21.3% 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 $7.35 versus $5.71 in the prior year. For the next year, the market is expecting a contraction of 13.1% in earnings ($6.39 versus $7.35).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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