Is Occidental Petroleum Stock Underperforming the Nasdaq?
Valued at a market cap of $41.2 billion, Houston, Texas-based Occidental Petroleum Corporation (OXY) is an integrated oil and gas company with operations in the U.S. and internationally. It operates through three segments: Oil and Gas; Chemical; and Midstream and Marketing.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Occidental Petroleum fits this criterion perfectly. The company also produces a wide range of basic and specialty chemicals and provides midstream services, including transportation and marketing of energy products.
Despite this, shares of the energy giant have declined 35.4% from its 52-week high of $64.75. OXY stock has decreased 8.1% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) over 4% rise over the same time frame.
In the longer term, OXY stock is down 15.4% on a YTD basis, a more pronounced decline than NASX’s marginal dip. Moreover, shares of Occidental Petroleum have dropped 30.1% over the past 52 weeks, compared to NASX’s 12.3% return over the same time frame.
The stock has been trading mostly below its 50-day and 200-day moving averages since last year.
Despite reporting weaker-than-expected Q1 2025 revenue of $6.8 billion on May 7, shares of OXY climbed 6.2% the next day as the company reported adjusted ESP of $0.87, beating analyst estimates. Investors were encouraged by operational efficiencies, including a 17% improvement in drilling duration per well and an 18% reduction in well costs, which allowed Occidental to lower capital and operating expenses by $350 million with minimal impact on production.
In addition, Occidental Petroleum has lagged behind its peer ConocoPhillips (COP) in stock performance. Over the past 52 weeks, COP shares have dropped nearly 24%, with a 13.9% YTD decline.
Due to the stock’s underperformance, analysts remain cautious on Occidental Petroleum. The stock has a consensus rating of “Hold” from 24 analysts in coverage, and as of writing, OXY is trading below the mean price target of $48.21.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.