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Do Wall Street Analysts Like Occidental Petroleum Stock?
West Texas Intermediate (WTI) crude oil prices hit $100 a barrel on Thursday, the highest level since 2014.
This has led to a surge in the stock prices of oil and gas companies, including Occidental Petroleum (OXY).
Since the beginning of the year, OXY stock has climbed over 100%.
This has outpaced the broader market, which is up about 10% during the same period.
So, what do Wall Street analysts think about Occidental Petroleum stock?
According to a recent survey of analysts by Bloomberg, the consensus recommendation for OXY stock is "buy." The average price target is $80, which represents a potential upside of over 20% from the current price.
Analysts are bullish on Occidental Petroleum because of its strong financial performance and its position as a leading oil and gas producer.
- In 2021, Occidental reported a net income of $4.9 billion, up from a loss of $2.5 billion in 2020.
- The company's cash flow from operations also improved significantly, from $2.1 billion in 2020 to $7.4 billion in 2021.
- Occidental Petroleum is one of the largest oil and gas producers in the United States. The company has a strong portfolio of assets in the Permian Basin, the Eagle Ford Shale, and the Gulf of Mexico.
Analysts believe that Occidental Petroleum is well-positioned to benefit from the rising oil and gas prices.
The company has a low cost of production and a strong balance sheet. This should allow it to continue to generate strong cash flow even if oil prices decline.
Of course, there are also some risks to consider.
The oil and gas industry is cyclical. This means that oil and gas prices can fluctuate significantly over time. If oil prices decline, this could hurt Occidental Petroleum's financial performance.
Additionally, Occidental Petroleum is a heavily indebted company. The company's total debt is over $20 billion. This could make it difficult for the company to raise additional capital if needed.
Overall, Wall Street analysts are bullish on Occidental Petroleum stock. The company has a strong financial performance, a strong portfolio of assets, and a low cost of production. This should allow it to continue to generate strong cash flow even if oil prices decline.
