10 Blue-Chip Stocks to Buy at 52-Week Lows

4. Occidental Petroleum Corporation (NYSE:OXY)

52 Week Range:  $49.75 – $71.19

Current Share Price: $51.79

Number of Hedge Fund Holders: 62

Market Capitalization as of September 30: $47.44 Billion

Occidental Petroleum Corporation (NYSE:OXY) is an energy juggernaut that engages in acquiring, exploring, and developing oil and gas properties. It stands out as one of the best blue chip stocks to buy at 52-week lows as it leverages A.I. tools to analyze geological data and, more precisely, identify possible oil and gas reserves.

Occidental Petroleum Corporation (NYSE:OXY) is a cyclical stock whose performance is affected by the economic outlook influencing oil and gas demand. The company’s earnings and share prices are always susceptible to factors influencing oil prices, such as a recession or declining demand.

While oil prices have tumbled significantly, the company’s outlook remains solid, especially with the Federal Reserve cutting interest rates expected to bolster economic growth. Occidental Petroleum Corporation (NYSE:OXY)’s balance sheet is robust and continues to strengthen as it concentrates on lowering its debt load.

In its earnings call for the second quarter of 2024, Occidental Petroleum Corporation (NYSE:OXY) demonstrated strong performance, generating $1.3 billion in free cash flow and exhibiting its highest quarterly production in four years.  Earnings totaled $1.03 a share, beating analyst estimates by 33.8%, as revenues totaled $6.88 billion.

Furthermore, the business reported making noteworthy progress toward its $4.5 billion debt reduction goal, cutting $3 billion from its principal debt in the third quarter of 2024.

Occidental Petroleum Corporation (NYSE:OXY) management projects that its annualized cash flow could rise by as much as $260 million for every $1 increase in crude oil prices per barrel. This implies that an increase in oil prices of $4 per barrel could generate over $1 billion in additional cash flow, which is an amazing accomplishment given that its free cash flow over the previous 12 months was only $6 billion.

While trading at a price-to-earnings multiple of 11, Occidental Petroleum Corporation (NYSE:OXY) is one of the blue-chip stocks to buy at 52-week lows for generating passive income on the side owing to its 1.72% dividend yield.

By the end of the second quarter of 2024, the number of hedge funds holding stakes in Occidental Petroleum Corporation (NYSE:OXY) rose to 62, up from 61 in the previous quarter. This increase, though modest, reflects a growing interest in Occidental Petroleum among institutional investors. The collective value of these stakes is substantial, exceeding $18.50 billion.