1. Occidental Petroleum Corporation (NYSE:OXY)
Warren Buffett’s Q2 2024 Stake: $16.09 Billion
Analyst Upside Potential, as of September 26: 37.79%
Number of Hedge Fund Holders: 62
Occidental Petroleum Corporation (NYSE:OXY) is an energy company that engages in acquiring, exploring, and developing oil and gas properties. Buffett started investing in the company in 2022 and has continuously bolstered his stakes.
The legendary investor is optimistic about the future trajectory of oil prices. Occidental Petroleum Corporation (NYSE:OXY) possesses the operational advantage needed to thrive in such circumstances while keeping a financial structure that can withstand adverse situations, at least temporarily.
Additionally, he has consistently emphasized the significance of effective management, of which Occidental has always ticked the box. This is particularly true in the field of resource extraction, where the proper allocation of capital and the efficiency of operations are crucial.
A competent management team with a strategic perspective can make a significant difference. Thanks to proper management, Occidental Petroleum Corporation (NYSE:OXY) boasts a breakeven price for oil below $60 per barrel, ensuring it makes a profit with oil prices above the $70 barrel level.
The company has also engaged in several multi-billion-dollar acquisition deals as it continues to expand its footprint and strengthen its competitive edge. It acquired CrownRock’s holdings assets in the Midland Basin and, conversely, strengthened its assets. Thanks to the contribution from CrownRock, the midpoint of OXY’s overall company output and forecasts have risen from 1.25 million barrels of oil equivalents (BOE) to around 1.32 million BOE daily.
Occidental Petroleum Corporation (NYSE:OXY) has also bought back billions of dollars of its shares and paid out a substantial dividend, which, given the current stock prices, offers around a 1.7% return, affirming why it is one of the best Warren Buffet stocks to buy, according to analysts given its high shareholder returns.
Based on analysts’ average price target, Occidental Petroleum Corporation (NYSE:OXY) has a 37.79% upside potential. The stock holds a consensus rating of Moderate Buy, derived from 6 buy ratings, 10 hold ratings, and 1 sell rating. According to 17 Wall Street analysts, the average 12-month price target is $70.44, with a high estimate of $81.00 and a low estimate of $59.00.
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 from 61, with the total value of these stakes exceeding $18.52 billion.
The best Warren Buffett stocks to buy according to analysts are companies with significant upside potential and likely to generate long-term value owing to their solid underlying fundamentals. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than OXY, check out our report about the cheapest AI stock.
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