Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

Occidental Petroleum has seen a noticeable improvement in profitability and its balance sheet, but the market has already partially priced this in. A P/E of 7.52 looks low relative to the industry and supports the valuation, while a P/S of 2.33 is above the median, suggesting more expensive revenue compared with the sector. P/B of 1.30 and P/FCF of 9.72 look moderate, without any clear signs of overheating, but also without a strong discount that would justify aggressive upside. Profitability is strong: a net margin of 27.3%, operating margin of 23.81%, and gross margin of 73.32% are above industry benchmarks, indicating good cost control and strong pricing power. At the same time, ROE of 10.75% and ROA of 4.82% remain below the industry median, meaning capital and asset efficiency does not look exceptional for a premium valuation. ROI of 11.58% is above the industry and shows that invested capital is generating a solid return, which supports intrinsic value. The debt load looks comfortable: debt/equity of 0.32 is below the industry, current ratio of 1.41 and quick ratio of 1.13 indicate acceptable liquidity, and debt has declined significantly in recent years. The increase in cash on hand to $4.15 billion, growth in equity, and reduction in long-term debt are clear positives for stability. Revenue and profit are high in absolute terms, but the year-to-year trend is uneven, and operating income in the latest period looks weaker than previous peaks, which limits confidence in a sustained acceleration. Dividend yield of 0.46% is low and declining, so the dividend factor adds little attractiveness for an income-oriented investor. Overall, the company’s fundamentals are solid, but not strong enough to justify a meaningful increase in the target price: the low P/E and strong margins support the valuation, while the higher P/S, moderate ROE/ROA, and weak dividend yield limit upside. For an investor, this is more a story of a high-quality but no longer cheap energy asset with a healthy balance sheet and decent profitability than a clear candidate for a substantial upward revision.

Occidental Petroleum Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Слабый индекс, значительно вырос. Рынок на стороне медведей.

Weak index, significantly up. The market is on the bears' side.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Сильный индекс, значительно вырос. Приток средств в шорты на высоком уровне.

Strong index, significantly up. Inflow of funds into shorts at a high level.

Strong margins, low P/E, and an improved balance sheet support OXY, but a high P/S, moderate ROE/ROA, and weak dividend yield limit the upside.

The S&P 500 Index ($SPX) (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.50%. December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.
Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low. Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout. Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.
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Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation.
Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok. The 10-year T-note yield rose +1 bp to 5.09%.
Friday’s US economic news was mixed for stocks. The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures. However, Sep manufacturing production rose +0.3% m/m, right on expectations.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high. Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies. Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.58%. China's Shanghai Composite closed up +0.24%. Japan's Nikkei-225 Stock Average closed up +1.39%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday. The 10-year T-note yield rose +2.7 bp to 5.085%. Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes. Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes. Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.
European government bond yields were mixed on Friday. The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.
ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."
Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market. Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%. Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%. In addition,
CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years. Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.
The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market. Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials. Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%. Apple (AAPL) bucked the trend and closed up +0.43%.
Cybersecurity stocks retreated on Friday. Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%. Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.
Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100. Also, ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.
Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%. Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.
Defensive food producers moved higher on Friday amid the slump in the broader market. Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM), Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.
Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund 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.

Stock Indexes Finish Sharply Lower as Tech Stocks Plunge

The S&P 500 Index ($SPX) (SPY) is down by -0.07% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.42%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.69%. December E-mini S&P futures (ESZ26) are down -0.05%, and December E-mini Nasdaq futures (NQZ26) are down -0.65%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a 2.5-week high. The broader market is under pressure from higher crude oil prices, with WTI crude up more than +2% today on concerns about escalating tensions in the Middle East after repeated Houthi attacks on Saudi Arabia from neighboring Yemen. Weakness in chipmakers and AI-infrastructure stocks is also weighing on the overall market today.
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Stocks have support from the prospect of solid quarterly earnings results that will begin this week. Goldman Sachs today raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” Also, strength in software stocks and energy producers is supportive of the overall market.
Market activity may be below normal, as the cash Treasury market is closed today for the Columbus Day bank holiday.
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
Nov WTI crude oil prices (CLX26) are up more than +2% today after Iran-backed Houthi rebels in Yemen launched drone and missile attacks against Saudi Arabia over the weekend, raising the risk of escalation that could draw the US into the conflict. Also, there's been a recent escalation of drone and missile attacks against vessels traversing the Strait of Hormuz, limiting energy exports from the region. Limiting gains in crude are the prospects of Russia releasing diesel supplies into theglobal marketafter the US Treasury issued a waiver for previously sanctioned Russian fuel. Last Friday, Russia said it will partially lift its ban on diesel exports, allowing 500,000 MT of diesel fuel to reach international markets following an agreement between Russian President Putin and US President Trump.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +0.44%. China's Shanghai Composite closed down -0.43%. Japan's Nikkei-225 Stock Average did not trade, as Japanese markets were closed today for the Health Sports Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -2.5 ticks today. The 10-year T-note yield is not trading today, as the cash Treasury market is closed for the Columbus Day bank holiday. Dec T-notes are under pressure today as higher crude oil prices raise inflation expectations.
European government bond yields are mixed today. The 10-year German bund yield is down -0.5 bp to 3.476%. The 10-year UK gilt yield is up +0.1 bp to 5.444%.
ECB Governing Council member Yannis Stournaras said the ECB may raise interest rates again to curb inflation but without rushing any action, suggesting an ECB rate hike this month is less likely than one in December.
Markets are discounting a 13% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are sliding today, weighing on the overall market. Lumentum Holdings (LITE) is down more than -7% to lead losers in the S&P 50 and Nasdaq 100, and Sandisk (SNDK) is down more than -6%. Also, Micron Technology (MU) and Marvell Technology (MRVL) are down more than -4%, and Advanced Micro Devices (AMD), ARM Holdings (ARM), Intel (INTC), and Seagate Technology Holdings Plc (STX) are down more than 3-%. In addition, Lam Research (LRCX), KLA Corp (KLAC), Microchip Technology (MCHP), and Western Digital (WDC) are down more than -2%, and Applied Materials (AMAT), Broadcom (AVGO), and Qualcomm (QCOM) are down more than -1%.
Software stocks are climbing today, led by a +2% jump in Salesforce (CRM) to lead gainers in the Dow Jones Industrials after Bank of America Global Research double-upgraded the stock to buy from underperform with a price target of $285. Also, Workday (WDAY) is up more than +2%, and ServiceNow (NOW), Intuit (INTU), and Microsoft (MSFT) are up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude oil up more than +2%. Diamondback Energy (FANG) is up more than +2%, and APA Corp (APA), Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), ExxonMobil Holdings (XOM), and Occidental Petroleum (OXY) are up more than +1%.
IonQ (IONQ) is down more than -8% after agreeing to buy Elisity Inc. for as much as $1.3 billion in an all-stock transaction.
Chipotle Mexican Grill (CMG) is down more than -4% after Starbucks said it has no plans to acquire the company.
Enact Holdings (ACT) is down more than -1% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $44.
Adobe (ADBE) is down more than -1% after Wells Fargo Securities double-downgraded the stock to underweight from overweight with a price target of $225.
First Tracks Biotherapeutics (TRAX) is up more than +6% after reporting topline results from an early-stage trial of its experimental therapy for celiac disease.
AST SpaceMobile (ASTS) is up more than +4% after Deutsche Bank upgraded the stock to buy from hold with a price target of $93.
Biogen (BIIB) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral, with a price target of $300.
Earnings Reports (10/12/2026)
Liberty Live Holdings Inc (LLYVA) and SR Bancorp Inc (SRBK).
On the date of publication, Rich Asplund 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.

Stocks Pressured by Rising Crude Prices and Chipmaker Weakness

Key Points
Oxy only needs oil to stay above $40 per barrel.
ExxonMobil can keep hiking its dividends if oil drops to $35 per barrel.
Energy Transfer’s “toll road” pipelines can survive extreme oil price swings.
In early September, the prices of West Texas Intermediate (WTI) and Brent crude oil briefly soared above $100 per barrel as the conflict in Iran dragged on. That rally lifted many oil stocks, but it also slammed other industries with higher labor and logistics costs.
As of this writing, WTI trades at about $91 per barrel, while Brent remains above $100 per barrel. Those high prices will enable dividend-paying oil companies to generate ample cash to cover their payouts, but some investors might worry about dividend cuts if oil prices tumble.
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But if we look closer at the big upstream, midstream, and downstream players, we'll find plenty of companies that can easily afford to raise their dividends even if the price of crude oil sinks far below $100. Let's see why three of them -- Occidental Petroleum (NYSE: OXY), ExxonMobil (NYSE: XOM), and Energy Transfer (NYSE: ET) -- are still worth buying today.
Occidental Petroleum
Occidental Petroleum, more commonly known as Oxy, generates most of its profits from its upstream business. Upstream companies flourish when oil prices are high, since their revenues generally rise much faster than their operating expenses. Oxy also divested its downstream business -- which fares better when oil prices are lower -- earlier this year.
Oxy produces the vast majority of its gas and oil in the U.S., so it's well-insulated from overseas conflicts. It also continues to reduce its drilling times, cut its structural costs, and increase its cash flow by integrating the assets it acquired through its 2024 acquisition of CrownRock.
Oxy pays a forward dividend yield of 1.9%, and it's raised its payout annually for five consecutive years. Its low trailing payout ratio of 30% gives it plenty of room for future hikes, and it only needs WTI crude oil prices to stay above its corporate breakeven price of $40 per barrel to support its capex and dividends. So while Oxy's upstream business would certainly benefit from soaring oil prices, it can still easily raise its dividends if oil prices pull back.
ExxonMobil
ExxonMobil, one of the world's largest integrated energy companies, owns upstream, midstream, and downstream assets in over 56 countries. That diversification makes it a less direct play on rising oil prices than Oxy, but it's also better insulated from a pullback.
Regardless of what happens to oil prices in the near term, ExxonMobil plans to increase its oil and gas production by nearly 3% annually through 2030. It gets most of its oil in the U.S., but it's been expanding in Asia, Africa, and South America. It has a bit more exposure to the Middle East than its closest competitors, but it offsets that pressure with its scale and diversification.
ExxonMobil only needs Brent crude oil prices (the preferred metric for multinational oil companies) to remain above $35 per barrel to cover its capex and dividends. It's raised its dividends annually for 43 consecutive years, pays a forward yield of 2.5%, and its trailing payout ratio of 53% suggests that streak will continue for the foreseeable future.
Energy Transfer
Energy Transfer, which operates over 140,000 miles of pipeline across 44 states, is one of the country's largest midstream companies. It delivers crude oil, natural gas, natural gas liquids (NGL), and other refined products through its pipelines and marine export terminals.
As a midstream company, Energy Transfer simply collects "tolls" from upstream and downstream companies that transport resources through its pipelines. That business model is naturally insulated from volatile commodity prices, since it only needs those resources to keep flowing through its infrastructure to generate stable profits.
As a master limited partnership (MLP), Energy Transfer blends a return of capital with its own income to pay distributions that are more tax-efficient than traditional dividends. It spends only about half of its distributable cash flow (DCF) on distributions each year, has raised its payout annually for four consecutive years, and pays a high forward yield of 6.8%. It won't profit as much from high oil prices as Oxy or ExxonMobil, but it will remain a reliable, high-yield play for income-oriented investors.
Should you buy stock in Occidental Petroleum right now?
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3 Dividend Stocks That Didn't Need $100 Oil to Keep Raising Their Payouts

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Bloom Energy Corp (Symbol: BE), where a total of 136,830 contracts have traded so far, representing approximately 13.7 million underlying shares. That amounts to about 76.3% of BE's average daily trading volume over the past month of 17.9 million shares. Especially high volume was seen for the $295 strike call option expiring October 02, 2026, with 10,049 contracts trading so far today, representing approximately 1.0 million underlying shares of BE. Below is a chart showing BE's trailing twelve month trading history, with the $295 strike highlighted in orange:
Super Micro Computer Inc (Symbol: SMCI) saw options trading volume of 272,642 contracts, representing approximately 27.3 million underlying shares or approximately 71.7% of SMCI's average daily trading volume over the past month, of 38.0 million shares. Particularly high volume was seen for the $43.50 strike call option expiring October 02, 2026, with 17,387 contracts trading so far today, representing approximately 1.7 million underlying shares of SMCI. Below is a chart showing SMCI's trailing twelve month trading history, with the $43.50 strike highlighted in orange:
And Occidental Petroleum Corp (Symbol: OXY) saw options trading volume of 64,475 contracts, representing approximately 6.4 million underlying shares or approximately 69.1% of OXY's average daily trading volume over the past month, of 9.3 million shares. Particularly high volume was seen for the $60 strike call option expiring October 09, 2026, with 13,766 contracts trading so far today, representing approximately 1.4 million underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for BE options, SMCI options, or OXY options, visit StockOptionsChannel.com.
Further BE Research:

Notable Friday Option Activity: BE, SMCI, OXY

In the latest trading session, Occidental Petroleum (OXY) closed at $54.94, marking a -2.07% move from the previous day. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.09%.
The oil and gas exploration and production company's stock has dropped by 6.78% in the past month, falling short of the Oils-Energy sector's gain of 0.04% and the S&P 500's loss of 0.24%.
The upcoming earnings release of Occidental Petroleum will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.37, reflecting a 114.06% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.61 billion, down 1.58% from the year-ago period.
OXY's full-year Zacks Consensus Estimates are calling for earnings of $6.2 per share and revenue of $26.89 billion. These results would represent year-over-year changes of +180.54% and +5.71%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Occidental Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.71% upward. Right now, Occidental Petroleum possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 9.05. This represents a discount compared to its industry average Forward P/E of 19.83.
Meanwhile, OXY's PEG ratio is currently 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 203, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Occidental Petroleum (OXY) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Key Points
Chevron provides massive global scale and a strong balance sheet supported by integrated operations.
Occidental Petroleum focuses on high-margin domestic production and aggressive investments in carbon capture technology.
Which energy giant is the better choice for your portfolio in 2026?
As global energy markets shift, choosing between an integrated titan and a focused domestic producer remains a challenge. Is Chevron (NYSE:CVX) or Occidental Petroleum (NYSE:OXY) the better buy for your portfolio today?
Chevron provides stability through its massive global footprint, which includes refining and marketing segments. Occidental Petroleum focuses more on exploration and production in the United States, while also placing a large bet on carbon capture technologies. Both companies represent different ways to play the energy cycle, making them popular choices for investors seeking oil exposure.
The case for Chevron
Chevron sells crude oil, natural gas, and refined products to a vast array of industrial and retail customers across the globe. It manages major assets such as the Gorgon LNG project in Australia and the Leviathan field in Israel to ensure long-term energy supplies. As a titan among renewable energy stocks and traditional fossil fuel producers, the company also markets fuels through approximately 13,800 branded service stations.
In FY 2025, revenue reached nearly $184.4 billion, down from approximately $193.4 billion reported in the previous year. Despite lower top-line results, the company generated net income of roughly $12.3 billion for the period. This performance resulted in a net margin of close to 6.7%, which is a financial metric that measures how much profit a company keeps from every dollar of sales.
As of its December 2025 balance sheet, the company's debt-to-equity ratio is approximately 0.3x. This ratio compares total debt to shareholder equity to show how much a business relies on borrowing to fund its operations. The current ratio is about 1.2x, while free cash flow reached nearly $16.6 billion, representing the cash left over after accounting for necessary capital projects.
The case for Occidental Petroleum
Occidental Petroleum operates as an international explorer and producer with operations heavily focused on the Permian Basin and the Gulf of Mexico. It utilizes its midstream and marketing segment to optimize the value of its assets, including equity investments in Western Midstream Partners (NYSE:WES). The company recently streamlined its focus toward its core energy production by selling its chemicals business in early 2026.
In FY 2025, revenue reached nearly $21.6 billion, which reflected a significant decline from the $27.1 billion generated in the prior fiscal year. The company reported net income of approximately $2.4 billion for the 2025 fiscal period. This led to a net margin of about 11%, indicating the percentage of revenue remaining after the company accounts for all of its operating and non-operating expenses.
Based on its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.7x. The current ratio is approximately 0.9x, indicating that its current assets are slightly lower than its current liabilities due within one year. During the fiscal year, the company generated free cash flow of nearly $4.1 billion, which is the cash remaining after accounting for mandatory investments in its business projects.
Risk profile comparison
Chevron faces significant risks from commodity price volatility, as its earnings are heavily tied to the fluctuating prices of crude oil and natural gas. Operational hazards such as well blowouts or pipeline ruptures can lead to significant environmental liabilities that are not always covered by insurance. Additionally, the company must successfully integrate assets from its acquisition of Hess Midstream (NYSE:HESM) to meet its production and synergy goals.
Occidental Petroleum is highly exposed to price drops because it maintains limited hedging activities to protect its revenue from market volatility. Its low-carbon strategy, which includes heavy investments in direct air capture, faces significant technological risks and uncertain commercial viability in new markets. The company also carries higher debt levels than some of its peers, which might limit its financial flexibility if interest rates rise or economic conditions worsen.
Valuation comparison
Occidental Petroleum appears cheaper based on its Forward P/E, while Chevron trades at a lower P/S ratio, which measures price against sales over the past twelve months.
Metric
Chevron
Occidental Petroleum
Forward P/E
12.8x
9.3x
P/S ratio
2.0x
2.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
When comparing Occidental Petroleum (OXY) and Chevron (CVX), investors should take a few key factors into consideration. Let's have a look at them and see what that tells us about each stock.
First, there's valuation. This is crucial for energy stocks, which tend to have a lower valuation compared with the broader stock market. Forward P/E is an estimate-based metric, which compares current price to forward earnings estimates. On this basis, OXY is the cheaper stock, holding a 9.3x forward P/E versus a 12.8x forward P/E for Chevron. However, on another key valuation metric, price-to-sales (P/S), the roles are reversed. Chevron has a P/S multiple of 2.0x, while OXY's P/S ratio is 2.3x. Therefore, valuation is a push in my book.
Another factor to consider is income potential. Chevron boasts a dividend yield of 3.5%, while OXY's dividend yield is around 2%. What's more, CVX has raised its divided for 39 consecutive years. OXY has also raised its dividend for several years running, but its streak is far shorter at only four consecutive years. For income-oriented investors, CVX wins the head-to-head matchup on both size of its payout and consistency of its dividend hikes.
In summary, CVX comes out on top for me, since it wins the income matchup cleanly. Value-seeking investors can still make a solid case for OXY, particularly when examining the growth profiles of the two companies. However, in my view, the size and stability of Chevron's increasing dividend payments outweigh that consideration.
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Chevron vs. Occidental Petroleum: Which Energy Stock Is a Better Buy in 2026?

Occidental Petroleum (OXY) closed the most recent trading day at $56.10, moving -1.34% from the previous trading session. This change lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
Coming into today, shares of the oil and gas exploration and production company had lost 3.79% in the past month. In that same time, the Oils-Energy sector gained 1.13%, while the S&P 500 gained 0.96%.
Analysts and investors alike will be keeping a close eye on the performance of Occidental Petroleum in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.37, reflecting a 114.06% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.61 billion, indicating a 1.58% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.2 per share and revenue of $26.89 billion, which would represent changes of +180.54% and +5.71%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Occidental Petroleum. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.71% increase. Occidental Petroleum currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Occidental Petroleum is at present trading with a Forward P/E ratio of 9.18. This valuation marks a discount compared to its industry average Forward P/E of 19.95.
Also, we should mention that OXY has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - United States industry had an average PEG ratio of 1.76.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 32% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The S&P 500 Index ($SPX) (SPY) is up by +0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.30%. December E-mini S&P futures (ESZ26) are up +0.25%, and December E-mini Nasdaq futures (NQZ26) are up +0.31%.
Stock indexes are moving higher today amid weakness in crude oil prices. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. Also, strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure.
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Today’s US economic news was better than expected and supportive for stocks after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m. Also, the University of Michigan US Sep consumer sentiment index was unexpectedly revised upward by +0.3 to 48.1, stronger than expectations of a downward revision to 47.5.
Stock indexes fell from their highs today as bond yields rose. The 10-year T-note yield climbed to a new 19-year high of 5.23% today on concerns the Fed will continue to raise interest rates after New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.
Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.
Markets are discounting a 66% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.37%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -9 ticks today. The 10-year T-note yield is up +2.3 bp to 5.225%. Dec T-notes are under pressure today and are just above Thursday’s 19-year nearest-futures low, and the 10-year T-note yield rose to a new 19-year high of 5.223%. T-notes gave up an overnight advance and turned lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell today on better-than-expected US economic news, including Aug nondefense ex-aircraft capital goods new orders and the University of Michigan Sep US consumer sentiment index. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 17-year high of 3.632% and is up +2.8 bp to 3.628%. The 10-year UK gilt yield climbed to a 1.5-week high of 5.408% and is up +1.6 bp to 5.397%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM), NXP Semiconductors NV (NXPI), and Qualcomm (QCOM) are up more than +3%, and Microchip Technology (MCHP), Analog Devices (ADI), and Texas Instruments (TXN) are up more than +2%. Also, SanDisk (SNDK), ASML Holding NV (ASML), Applied Materials (AMAT), and Lam Researach (LRCX) are up, more than +1%.
Cybersecurity stocks are under pressure today, led by an -8% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Okta (OKTA) and SentinelOne (S) are down more than -3%, and Palo Alto Networks (PANW), Fortinet (FTNT) and Gen Digital (GEN) are down more than -2%. In addition, CrowdStrike Holdings (CRWD) is down more than -1%.
Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) and Devon Energy (DVN) are down more than -2%, and Phillips 66 (PSX), Marathon Petroleum (MPC), APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%.
Atlas Energy Solutions (AESI) is up more than +19% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Humana (HUM) is up more than +8% to lead gainers in the S&P 500 after Barclays upgraded the stock to overweight from equal weight with a price target of $515.
Akamai Technologies (AKAM) is up more than +7% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Twilio (TWLO) is down more than -6% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Lionsgate Studios (LION) is down more than -4% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.
Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Earnings Reports (9/25/2026)
None.
On the date of publication, Rich Asplund 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.

Stocks Supported by Lower Crude Prices and Strength in Chipmakers

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.34%. December E-mini S&P futures (ESZ26) are up +0.24%, and December E-mini Nasdaq futures (NQZ26) are up +0.35%.
Stock indexes are moving higher today amid weakness in crude oil prices and stable bond yields. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. The lower crude prices are easing inflation risks and stabilizing bond yields, after the 10-year T-note soared to a 19-year high of 5.22% on Thursday. The 10-year T-note yield is little changed at 5.18% today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure. Also, today’s US economic news was better than expected after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m.
New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.
Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.
Markets are discounting a 64% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.71%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -2 ticks today. The 10-year T-note yield is up +0.4 bp to 5.181%. Dec T-notes gave up an overnight advance and turned slightly lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell on signs of strength in the US economy after Aug nondefense ex-aircraft capital goods new orders rose more than expected, a hawkish factor for Fed policy. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.
European government bond yields are mixed today. The 10-year German bund yield is up +0.7 bp to 3.606%. The 10-year UK gilt yield is down -1.8 bp to 5.363%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM) is up more than +4%, and SanDisk (SNDK) is up more than +3%. Also, Micron Technology (MU) and Analog Devices (ADI) are up more than +2%. In addition, Marvell Technology (MRVL), ASML Holding NV (ASML), Applied Materials (AMAT), Western Digital (WDC), Broadcom (AVGO), Qualcomm (QCOM), Microchip Technology (MCHP), Seagate Technology Holdings Plc (STX) and Texas Instruments (TXN) are up more than +1%.
Cybersecurity stocks are under pressure today, led by a -4% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Palo Alto Networks (PANW) is down more than -3% to lead losers in the S&P 500 and Nasdaq 100, and Okta (OKTA), and SentinelOne (S) are down more than -2%. In addition, Fortinet (FTNT) and Gen Digital (GEN) are down more than -1%.
Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) is down more than -3%, and Devon Energy (DVN), Phillips 66 (PSX), and Marathon Petroleum (MPC) are down more than -2%. Also, APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%,
Atlas Energy Solutions (AESI) is up more than +15% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Akamai Technologies (AKAM) is up more than +8% to lead gainers in the S&P 500 after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Synopsys (SNPS) is up more than +3% after HSBC upgraded the stock to buy from hold with a price target of $700.
Twilio (TWLO) is down more than -3% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Lionsgate Studios (LION) is down more than -2% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.
Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Nike (NKE) is down more than -1% to lead losers in the Dow Jones Industrials after Bank of America Global Research downgraded the stock to underperform from neutral with a price target of $30.
Earnings Reports (9/25/2026)
None.
On the date of publication, Rich Asplund 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.

Stocks Rise as Crude Prices Fall and Bond Yields Stabilize

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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Occidental Petroleum (OXY)
Occidental Petroleum Corporation, founded in 1920 and based in Houston, TX, is an international energy company with significant oil and gas exploration and production exposure. Following the sale of OxyChem in January 2026, the company conducts continuing operations through two reportable segments: Oil and Gas and Midstream and Marketing. Occidental primarily operates in the United States, the Middle East and North Africa. At 2025-end, its worldwide proved reserves totaled about 4.6 billion barrels of oil equivalent (Boe), compared with 4.61 billion Boe at the end of 2024. The company achieved organic reserve replacement of 107% in 2025.
OXY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.37; value investors should take notice.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.54 to $6.20 per share. OXY also boasts an average earnings surprise of +46.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OXY should be on investors' short list.
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This article originally published on Zacks Investment Research (zacks.com).

Occidental Petroleum Corporation

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