Investment Analysis: Occidental Petroleum Corporation (OXY) - January 2026

Company Overview

Occidental Petroleum Corporation (NYSE: OXY), headquartered in Houston, Texas, is a significant player in the Energy sector, specifically in the Oil & Gas Exploration and Production (E&P) industry. Founded in 1920, Occidental operates through three main segments: Oil and Gas, which focuses on the exploration and production of oil, natural gas, and related products; Chemicals, which manufactures and markets a variety of basic chemicals and vinyls; and Midstream and Marketing, handling the purchase, marketing, transportation, and storage of various energy resources. As one of the largest publicly traded oil and gas companies in the United States, Occidental's operations span both domestic and international arenas, positioning it as a critical participant in the global energy landscape.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The 52-week stock price performance of Occidental Petroleum indicates a predominantly bearish trend throughout the year. The stock has seen a significant price decline of approximately 16.8%, decreasing from a 52-week high of $53.20 to its current price of $41.12.

Key Trends and Insights:

• Support and Resistance Levels: Key resistance is apparent at $50, where the stock faced multiple rejection points earlier in the year. Meanwhile, the support level around $35 has seen buying interest during past declines, suggesting a crucial threshold for investor sentiment.
• Moving Averages: Currently, OXY is trading just below its fifty-day moving average of $41.24, illustrating a consolidation phase that raises caution among investors. The stock has been under consistent selling pressure, characterized by lower highs and lower lows.
• Momentum Indicators: The stock's momentum appears weak, with recent attempts of recovery showing limited gains. A sustained upward movement would likely require breaking the $50 resistance with increased volume to signify a genuine bullish reversal.

Investors should proceed with caution, keeping an eye on volume changes and price action strategies that might indicate a future trend reversal or affirmation of the downward trajectory.

Financial Performance and Metrics

Occidental Petroleum has demonstrated robust financial performance, with total revenue reported at approximately $26.6 billion, underscoring its strong market presence.

Key Financial Metrics Include:

• EBITDA: The company boasts an EBITDA of about $12.69 billion, highlighting healthy profitability and operational efficiency.
• Shares Outstanding: Total shares outstanding number 985,210,434 with 981,663,676 float shares, indicating significant market liquidity.
• Short Interest: Approximately 5.91% of the float, equating to 37,474,602 shares shorted, indicates a cautious sentiment from some investors anticipating price decline.

Valuation Metrics:

• Current stock price: $41.12
• Target high price: $64.00
• Mean target price: $49.92.
• Median target price: $48.50.

This data suggests potential for substantial price appreciation, but the existing market volatility emphasizes the need for careful consideration.

Recent News and Developments

Occidental has recently been active in making significant corporate restructuring moves. On October 2, 2025, the company announced the sale of its chemical business, OxyChem, to Warren Buffett's Berkshire Hathaway for $9.7 billion. Despite this substantial divestiture, OXY's stock saw a decline of over 7% following the announcement, closing at $44.23. Market analysts suggest that this drop may come from concerns related to diminished recurring revenue streams and the sale price being lower than initial expectations.

In consequence, several financial institutions adjusted their forecasts: - Raymond James raised its price target from $45 to $50, maintaining an "Outperform" rating thanks to surpassing third-quarter production expectations. - Conversely, Evercore ISI lowered its price target from $40 to $38, citing worries surrounding the company's capital structure post-sale.

Overall, these developments have led to a volatile response in the market, reflecting mixed investor sentiment regarding Occidental's strategic directions.

Market Sentiment and Analyst Recommendations

As of this analysis, Occidental Petroleum's consensus among 24 analysts yields an average recommendation score of 2.8, which generally indicates a neutral approach.

Analyst Insights:

• Buy Recommendations: Some analysts see the potential for recovery should OXY stabilize above key resistance levels.
• Hold Recommendations: A predominant consensus recommends holding existing positions, suggesting patience rather than aggressive buying tactics amidst current volatility.

Sentiment Summary:

• Current stock price: $41.12 (intraday performance fluctuated between $41.03 to $41.96 today).
• Market sentiment appears cautious, navigating potential risks while looking for considerable opportunities arising from any future price movements or strategic shifts at the corporate level.

Conclusion

In summary, Occidental Petroleum Corporation (NYSE: OXY) presents a mixed investment case. The stock has worked through significant downward price trends, while current financial metrics signal a robust operational foundation. Nonetheless, market volatility stemming from recent news and mixed analyst sentiments suggests a careful "hold" rather than a "buy" approach.

While solid returns could arise from capitalizing on strategic price movements, investors should remain vigilant in monitoring market dynamics. With a target price set at $64.00, careful analysis of support and resistance levels will be crucial for potential investors navigating the complexities of the oil and gas sector. Keep an eye on upcoming market developments that could affect Occidental's performance in this evolving energy landscape.