Buy Occidental Petroleum Shares (OXY)
Published: 25 May 2021 by Andrew
The last few years have certainly not been memorable for OXY but now there are some timid signs of recovery. What we want to find out is whether to buy Occidental Petroleum shares is convenient at this point, or whether it is better to wait for better times.
The energy sector is very complex and the oil sector even more so, so before you embark on this investment you should do some evaluations and we are here to help you.
For this reason, in our guide we will analyze:
- The economic situation of the company
- The current performance of the stock
- Analysts’ forecasts
After reading this article you can make an informed decision, you will have all the information you need to evaluate the future of this oil giant.
Let’s start by suggesting you to choose the intermediary to invest, they are not all the same, so choose carefully, taking into consideration only Brokers with regular CONSOB or CySEC licenses.
Here is a list of the best trading platforms, intermediaries like eToro, safe, reliable and commission free:
Min. Deposit: 50€
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Min. Deposit: 250€
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Buy Occidental Petroleum: Quotation and price in real time
What is Occidental Petroleum?
Occidental Petroleum Corporation is an American company engaged in the exploration, drilling and production of hydrocarbons in the United States, Canada and Chile. The company is headquartered in Houston, Texas.
The company was founded in California in 1920 and currently its activities are mainly concentrated in the United States, the Middle East and Colombia.
As of December 31, 2020, OXY (this is the company’s ticker and the acronym used to identify it) had 2,911 billion barrels of oil in its reserves. In the same year, oil production had reached 1,350,000 barrels per day.
How to buy Occidental Petroleum shares
Buying Occidental Petroleum stock is a secondary way of buying oil, i.e. investing in this sector.
But unlike direct investment in commodities, in this case there are also factors related to the company and its economic performance to be considered.
To invest in OXY you can use two types of intermediaries, both safe but very different:
- Traditional brokers, who require the opening of a securities account, the payment of stamp duty and commissions on each market transaction.
- CFD brokers, on the other hand, are certainly cheaper. There is no securities account, no trading commissions or stamp duties are paid. Not only that, these intermediaries also allow you to aim down if necessary.
In principle, the former are mainly used for long-term investments, when you decide to hold the shares for months or years, without making any transactions. The latter, on the other hand, are more suitable for online trading and frequent operations, since they are commission-free.
Best platforms to buy Occidental Petroleum shares
In the introduction to this guide we have included a list of the best trading platforms, so you can freely choose which one to use, they are all reliable.
Reliability is guaranteed by the licenses held by these intermediaries, issued by prestigious entities such as CONSOB and CySEC.
Among these platforms we have selected the 3 Brokers that stand out for the quality of their services and convenience and we have written short reviews about them:
eToro is certainly the most popular online broker in the world, has exceeded 20 million members and offers an extremely high level of security, thanks to the numerous licenses in its possession.
The flagship of this broker is certainly its trading platform, considered the most intuitive on the market. Below you can see it clearly with the Occidental Petroleum CFD in a screenshot:
How do you buy Occidental Petroleum stock with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the Occidental Petroleum stock and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
But not everyone loves “manual” trading. For this eToro has developed and patented a highly successful automatic trading system: Copy Trading.
This tool allows you to copy the market operations of the best traders (chosen by you on the platform) and report them identical to your account.
This way you will get the same returns as eToro’s more experienced traders, even if you have no investment experience.
Now let’s see some examples of traders you could copy, with their results from last year:
Click here and choose which trader to copy
ForexTB has gained a large slice of admirers in a few years, thanks to the numerous services offered to users and its extreme reliability, which is confirmed by a prestigious CySEC license.
Among the most successful services we find the Trading Course that this Broker has developed and made available for free.
This is a pdf that summarizes the basics of online trading and makes them usable by anyone, using a simple and understandable lexicon.
In addition, the course is free and this makes it particularly appreciated. Here is the link to download it:Click here and download the Trading Course for free
ForexTB offers its members two very different trading platforms but both free:
- Metatrader is a complete platform full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
To buy Occidental Petroleum shares with ForexTB you have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select Occidental Petroleum stock and click Buy (or Sell to short sell)
- Decide the amount to invest.
Trade.com has staked everything on user services and on the economic offer, which is very convenient.
This offer is based on the possibility of opening a trading account by paying a minimum deposit of 100 euros, a figure within everyone’s reach and much lower than the market average.
The CONSOB license confirms the absolute reliability of this intermediary, which, to improve the results of its users, has created an excellent Trading Course.
This ebook is a real technical analysis manual and allows you to learn the secrets that the most efficient traders use and what their strategies are.
Trade.com offers this course for free, despite having considerable value on the market. Here is the link to download it:Download the Trading Course for free by clicking here
At an operational level, with this Broker you will have the opportunity to trade with two trading platforms: The MT4 and the Web Platform, both free.
To buy Occidental Petroleum shares on Trade.com you need to follow these instructions:
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the Occidental Petroleum stock and click on “Buy” to buy or “Sell” to sell short
- Decide how much to invest in the operation.
Occidental Petroleum Business Model
The business model of Occidental Petroleum Corporation is that of a company engaged in the acquisition, exploration and development of oil and gas wells in the United States, the Middle East, Africa and Latin America.
The operating segments of the company are:
- Oil and Gas
- Marketing e Midstream
Let’s see the relevant data of this oil company:
Quotation: NYSE (OXY)
Component of the S&P 500
Headquarters: Houston, Texas, United States
CEO: Vicki Hollub
Net income – $ 15.675 billion (2020)
Number of employees: 11,800 (2020)
Buy Occidental Petroleum: does it worth it?
To understand if it is worth buying Occidental Petroleum shares we have to go back a few years.
In 2019, well before the outbreak of the global pandemic, Chevron had plans to buy Anadarko Petroleum for $ 50 billion. With this operation, the oil giant would also have taken over the large debt that had crushed Anadarko for years.
But Occidental Petroleum has seen fit to make a higher bid. He took out some funding and with the help of Berkshire Hathaway acquired Anadarko for $ 57 billion.
The operation went through and with it OXY took on a flood of debts and made others for the operation itself!
Then came Covid-19, oil prices dropped to their lows, demand plummeted and an already very risky operation became a catastrophe for Occidental Petroleum.
But 2021 is bringing a wave of change and OXY is recovering. The company has reduced its debt and the share price is showing encouraging signs.
Occidental Petroleum shares dividends
Occidental Petroleum pays an annual dividend of $ 0.04 per share, with a dividend yield of 0.16%.
The company pays 1.02% of its earnings as a dividend.
Occidental Petroleum competitors
Below we have listed some of Occidental Petroleum’s main competitors:
- Exxon Mobil
- Royal Dutch Shell
Occidental Petroleum forecasts
Shares of Occidental Petroleum are still down about 40% since early 2020, while Chevron’s shares have only fallen by about 15%.
But even if this is undoubtedly true, the OXY stock, due to this collapse, is in a much better position currently, because it is rather underestimated.
Leading analysts believe Occidental Petroleum to be undervalued stocks in the current scenario and this puts them in a favorable position for those who want to trade, especially in the short term.
Below are some of the assessments released by the major international investment banks:
- Mizuho raised its target price from $ 33.00 to $ 36.00. The company currently has a “buy” rating on the shares of the oil and gas producer.
- Credit Suisse Group raised Occidental Petroleum’s target share price from $ 21.00 to $ 22.00 and gave the stock an “underperform” rating.
- Truist raised its price target for Occidental Petroleum’s stock from $ 11.00 to $ 25.00 in a research report.
- Wolfe Research has reiterated an “underperform” rating and set a price target of $ 20.00 on Occidental Petroleum stock.
- Morgan Stanley raised its price target for Occidental Petroleum’s stock from $ 31.00 to $ 32.00 and gave the company an “equal weight” rating.
- Susquehanna raised her target price on Occidental Petroleum shares from $ 28.00 to $ 31.00 and gave the company a “positive” rating.
Occidental Petroleum shares target price
We looked at the valuations issued by 21 international analysts who have expressed their opinion on the Occidental Petroleum share price in recent months.
Their twelve-month average target price is $ 25.17, predicting a possible upside of 0.19% for the stock.
The high price target for OXY is $ 36.00 and the low price target is $ 12.00.
There are currently 4 sell ratings, 8 hold ratings and 9 buy ratings for the stock, confirming a wait-and-see situation on the part of the experts.
In summary, we can say that Occidental Petroleum made a mistake in the acquisition of Anadarko and when the demand for oil collapsed, it paid dearly for it.
But now there are encouraging signs for the whole segment and also for the OXY stock, which is far below its actual value, or at least that’s what some market analysts think.
Long-term forecasts are uncertain, but the volatility of the OXY stock makes the choice to buy Occidental Petroleum shares an interesting operation, especially if done in a short-term perspective, speculating on price fluctuations.
Online trading, especially commission-free, can offer excellent opportunities for profit when a stock fluctuates, but it takes experience and a lot of practice.
Experience is acquired over time and practice is done with the risk-free Demo accounts offered by the brokers we have talked about.
Here are the links to register for free to the Demo accounts offered by the main CFD Brokers:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Register on Trade.com and try the Demo account by clicking here
Occidental Petroleum is headquartered in Huston, Texas (USA).
Occidental Petroleum pays an annual dividend of $ 0.04 per share.
The twelve-month average target price for OXY shares is $ 25.17.
With CFD brokers like eToro, safe, reliable and commission-free. Perfect for short-term trading.