Q2 STOCKS TO BUY

Stumbling Oil Sector Drags OXY

The company is potentially selling its Middle East assets

Deputy Editor
Jun 9, 2020 at 1:12 PM
facebook X logo linkedin


The shares of Occidental Petroleum Corp (NYSE:OXY) are down 7.7% at $22.51 at last check, amid news that the oil and gas company is reviewing and possibly selling its Middle East assets in order to reduce debt. Meanwhile, BofA Global Research upgraded the stock to "buy" from "neutral," and hiked its price target to $32 from $18. Today's drop, however, seems to stem from strong dollar and oversupply concerns, which is affecting the broader U.S. oil and gas sector.

OXY has struggled to distance itself from its mid-March lows, trading sideways with overhead pressure at the $16 level keeping a lid on the shares. While the equity staged a breakout late last week, ending with a 60.5% week-to-date gain, overhead pressure at the descending 100-day moving average is keeping this rally in check. OXY remains down 45.6% year-to-date. 

OXY June 9

Analysts are bearish on OXY, with 18 of the 19 in coverage sporting a "hold" or worse rating, with a lone "strong buy" on the table. Meanwhile, the 12-month consensus price target of $13.38 is a 39.9% discount to current levels. 

Though calls outweigh puts in the options pits, these bearish bets are still more popular than usual. This is per OXY's 50-day put/call ratio of 0.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 85% of readings from the past year. 

A look at today's options trading shows an uptick in calls, with 83,000 across the tape so far -- double what is typically seen at this point -- compared to 38,000 puts. Most popular is the June 25 call, suggesting traders are speculating on more upside for the underlying stock by the time these contracts expire next Friday, June 19. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter