Occidental Petroleum is building momentum for the next $85 target

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on Jun 10, 2022
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  • Occidental Petroleum is A-rated on value, growth, and momentum
  • Earnings are expected to grow by more than 31.32%
  • The next price target is $85 hence the stock is a recommended buy

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Occidental Petroleum Corporation (NYSE:OXY) is trading at $64. This week, the stock lost about 8.66% from its opening of $70.10. Last week, the stock declined from $73.07 to $70.29.

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Our analysis indicates that the stock faces momentary resistance at $70. Since the stock has tested this resistance, it will eventually breakout to find a new target of $85.

Occidental Petroleum is A-rated on value, growth, and momentum. The company has an EPS of $6.94. The expected growth in EPS is 32.31%. That is mainly due to the strength of the oil and gas segment. 

Price measures indicate the forward PE at 10.52. That shows it is fairly priced when compared to the industry average. The PEG ratio is 0.19. The stock is potentially undervalued.

The low PEG accounts for the robust growth prospects. The PEG ratio also indicates that there is huge potential for gains, especially for long-term investors.

Occidental remains bullish with a temporary pullback

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Source – TradingView

Technical analysis indicates that Occidental Petroleum is just retracing its historical valuation. The next target is a valuation of $85. The pullback recorded over the last two weeks is mainly due to the RSI signals.

The RSI shows that the stock could be overbought. As the RSI slides below the overbought region, momentum towards higher valuations will return. The MACD confirms that Occidental Corporation is undoubtedly bullish. 

Summary

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We recommend buying and accumulating Occidental Corporation in the long term. Price metrics indicate the stock is not yet fully valued. With growth prospects at 32.31%, the stock will be expected to record huge gains.

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Occidental Petroleum Corporation USA Energy North America Stock Market