![]() With a remarkable return on invested capital of 22.34%, outperforming the industry average, OXY is an excellent choice for a portfolio of Warren Buffett stocks. Occidental has surpassed production expectations and maintains disciplined spending, resulting in a strong net margin of 24.58%. The average analyst price target for this top energy stock currently sits at $68.96, indicating potential gains of around 20% for investors willing to jump in. However, there’s strong consensus that shares of OXY stock are undervalued here. That is to say, the company’s rather small dividend yield of only 1.2% isn’t going to get many investors out of bed. Notably, Occidental’s surge in free cash flow and commitment to share buybacks contribute to its appeal. OXY’s commitment to sustainable innovations and strong operations in key oil production regions contributes to its enduring market share.īuffett seized the opportunity to invest in OXY when its stock price dipped below $60. Revenues for the quarter are expected to be $5.23 billion, up 0.2% from the year-ago quarter.Occidental Petroleum (NYSE: OXY) gains traction among institutional investors, including Warren Buffett, who holds over 200 million shares valued at $13 billion. This estimate indicates a year-over-year change of +5.8%. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.Īnother stock from the Zacks Manufacturing - Electronics industry, Eaton (ETN), is soon expected to post earnings of $1.82 per share for the quarter ended June 2022. Plug Power doesn't appear a compelling earnings-beat candidate. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. The company has not been able to beat consensus EPS estimates in any of the last four quarters.Īn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). ![]() ![]() ![]() Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. Our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction) - has this insight at its core. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. ![]()
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