Occidental Petroleum Corporation (OXY): A Bull Case Theory

We came across a bullish thesis on Occidental Petroleum Corporation (OXY) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on OXY. Occidental Petroleum Corporation (OXY)’s share was trading at $39.83 as of April 23rd. OXY’s trailing and forward P/E were 17.62 and 17.86 respectively according to Yahoo Finance.

25 Largest Energy Companies by Revenue

A vast oil and gas rig silhouetted in the sunset, capturing the power of Swift Energy Company.

Occidental Petroleum (OXY), having fallen more than 40% from its highs, presents a compelling investment opportunity supported by favorable supply dynamics and relative valuation. The current U.S. oil supply is on the lower end, which could act as a catalyst for higher oil prices over time, directly benefiting OXY. From a valuation standpoint, the company appears attractively priced when compared to peers such as ExxonMobil (XOM), Chevron (CVX), and BP, especially on PEG and PE metrics. As energy markets normalize and supply constraints persist, OXY stands to gain both from operational leverage and potential re-rating by the market. The combination of industry tailwinds and compelling valuation metrics positions Occidental as a notable fallen angel with a favorable risk/reward profile for investors seeking value in the energy sector.

Occidental Petroleum Corporation (OXY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held OXY at the end of the fourth quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of OXY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.