7 Best Beaten Down Stocks to Invest In

2. Occidental Petroleum Corporation (NYSE:OXY)

52 Week Range: $55.04- $71.19

Current Share Price: $56.98

Number of Hedge Fund Holders: 62

Market Capitalization as of September 3: $53 29 Billion

Occidental Petroleum Corporation (NYSE:OXY) is an energy company that engages in acquiring, exploring, and developing oil and gas properties. It explores, develops, and produces oil and condensate natural gas liquids (NGLs). It also manufactures and markets basic chemicals, including chlorine, caustic soda, and chlorinated organics.

The company has been in the limelight after billionaire investor Warren Buffett acquired 2.57 million shares, underscoring why it is an exciting pick in the energy sector. Nevertheless, the stock has remained subdued, trading close to its 52-week lows due to macroeconomic headwinds impacting the oil process.

Nevertheless, with the possibility of aggressive rate cuts, the oil outlook remains bullish, translating to booming business for Occidental Petroleum Corporation (NYSE:OXY).

Occidental has already affirmed its commitment to reducing its debt and enhancing its credit performance. During the initial eight months of the year, the company paid off $2.3 billion in debt. As credit performance continues to improve, the stock sentiments should improve and, therefore, edge higher from current lows.

Additionally, it’s worth mentioning that in the second quarter, Occidental Petroleum Corporation (NYSE:OXY) disclosed a free cash flow of $1.3 billion. Despite the lower oil prices, the oil and gas exploration firm is in a strong position to achieve an annual free cash flow of $5.2 billion.

The free cash flow is expected to expand due to the possibility of oil prices increasing. This development will aid in reducing debt. Concurrently, there’s a high chance of significant capital expenditures aimed at ensuring consistent production growth. Improved cash flow should allow the company to continue rewarding investors with dividends going by the current 1.54% dividend yield.

By the end of the second quarter of 2024, the number of hedge funds with stakes in Occidental Petroleum Corporation (NYSE:OXY) increased to 62, up from 61 in the previous quarter. These stakes are collectively valued at over $18.5 billion.