Occidental Stock Story

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OXY
 Stock
  

USD 63.50  0.01  0.0157%   

By Vlad Skutelnik
Macroaxis Story
Today's article will break down Occidental Petroleum. I will address few reasons this entity was abused by investors due to the current market volatility. On the 2nd of July the company is traded for 60.44. Occidental Petroleum Corp has historical hype elasticity of 0.25. The average price elasticity to hype of competition is about 0.2. The entity is anticipated to increase in value after the next headline, with the price going to jump to 60.69. The average volatility of media hype impact on Occidental Petroleum stock price is about 198.35%. The price jump on the next news is projected to be 0.41%, whereas the daily expected return is now at 0.14%. The volatility of related hype on Occidental Petroleum is about 256.26% with expected price after next announcement by competition of 60.64 Considering the 90-day investment horizon the next anticipated press release will be in about 9 days.
Published over a month ago
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Chances of Occidental Petroleum (NYSE:OXY) to slide in August.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Occidental Petroleum has an asset utilization ratio of 59.8 percent. This suggests that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that Occidental Petroleum Corp is more efficient with each dollar of assets it utilizes for everyday operations.
The company has Net Profit Margin of 8.95 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 50.52 %, which entails that for every 100 dollars of revenue, it generated 0.51 of operating income.
The successful prediction of Occidental Petroleum stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Occidental Petroleum Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Occidental Petroleum based on Occidental Petroleum hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Occidental Petroleum's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Occidental Petroleum's related companies.

Use Technical Analysis to project Occidental expected Price

Occidental Petroleum technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Overlap Analysis
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Forecast Models
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Price Shifting
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Volatility Indicators
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Value Movement
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A focus of Occidental Petroleum technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Occidental Petroleum trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Occidental Petroleum, but it might be worth checking our own buy vs. sell analysis

Purchase by Berkshire Hathaway Inc of 2583094 shares of Occidental Petroleum

Legal trades by Occidental Petroleum insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Occidental insider trading alert for perchase of common stock by Berkshire Hathaway Inc, the corporate stakeholder, on 12th of August 2022. This event was filed by Occidental Petroleum Corp with SEC on 2022-06-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The modest gains experienced by current holders of Occidental Petroleum may encourage investors to take a closer look at the company as it is trading at a share price of 60.44 on very low momentum in trading volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.61. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Occidental Petroleum partners.

Cost of Revenue Breakdown

Occidental Petroleum Cost of Revenue yearly trend continues to be fairly stable with very little volatility. Cost of Revenue will likely drop to about 15.4 B in 2022. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Occidental Petroleum Cost of Revenue is fairly stable at the moment as compared to the past year. Occidental Petroleum reported Cost of Revenue of 17.28 Billion in 2021
2014
2015
2016
2017
2018
2019
2021
2022
201411.61 Billion
201510.69 Billion
20169.73 Billion
20179.91 Billion
201810.98 Billion
201915.03 Billion
202117.28 Billion
202215.38 Billion

Can Occidental Petroleum build up on the current rise?

Current treynor ratio is at 0.11. Occidental Petroleum Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Occidental Petroleum Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Occidental Petroleum future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Occidental Petroleum's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Occidental Petroleum's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Occidental Petroleum Implied Volatility

Occidental Petroleum's implied volatility exposes the market's sentiment of Occidental Petroleum Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Occidental Petroleum's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Occidental Petroleum stock will not fluctuate a lot when Occidental Petroleum's options are near their expiration.

Our Final Perspective on Occidental Petroleum

While few other entities under the oil & gas e&p industry are still a bit expensive, Occidental Petroleum may offer a potential longer-term growth to investors. On the whole, as of the 2nd of July 2022, we believe that at this point, Occidental Petroleum is very steady with below average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. However, our current 90 days Buy-Hold-Sell recommendation on the company is Buy.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Occidental Petroleum Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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