Analyst Calls Oil Stock "Underappreciated"

OXY has lagged behinds its oil & gas peers over the past six months

Deputy Editor

Feb 14, 2023 at 10:48 AM

Occidental Petroleum Corp (NYSE:OXY) is buzzing this morning, after Goldman Sachs upgraded the oil company to "buy" from "neutral" with an $81 price target, calling the stock "underappreciated," after lagging behind its peers the past six months. At last glance, OXY was up 2.2% at $66.18.

On the charts, the $60 level has provided a floor for pullbacks since the start of the year. A confluence of several long-term moving averages is lingering just above the shares, however, including their 140-day trendline. Year-to-date, the equity is up 5.2%.

There's plenty of room for more analysts to shift optimistic, as 17 of the 28 in coverage carry a "hold" or worse rating on OXY. Meanwhile, short interest represents 5.4% of the stock's available float, or four days' worth of pent-up buying power.

Now could be a good time to weigh in with options, as Occidental Petroleum stock sports affordable premium at the moment. This is per its Schaeffer's Volatility Index (SVI) of 44% that ranks in the 16th percentile of its annual range.

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