Is the stock performance of Occidental Petroleum lagging behind that of the Dow Jones Industrial Average?

Occidental Petroleum Corporation's Q2 2025 Earnings and Market Performance

Occidental Petroleum Corporation (OXY), a major player in the U.S. oil and gas industry, has been making headlines recently. With a market capitalization of approximately $46.9 billion, OXY is classified as a "large-cap" stock.

Despite the strong market position, Wall Street seems to be adopting a cautious stance towards OXY stock, taking a "wait-and-see approach." This could be due to the recent Q2 2025 earnings report, which, while showing a positive surprise in profit forecasts, fell short of revenue expectations.

OXY's operations span across the Permian Basin, DJ Basin, and the Gulf of Mexico, making it one of the largest oil and gas producers in the country. The company also operates Oxy Low Carbon Ventures, a segment dedicated to developing technologies to reduce emissions.

In a bid to reduce its debt load, OXY has repaid $3 billion this year through asset sales, healthy cash flow, and proceeds from warrant exercises. However, information on the repayment of bonds is not currently available.

Over the past year, Coterra Energy Inc. (CTRA) has edged up 1.6%, while OXY has experienced a double-digit loss. This trend continues in 2025, with OXY's year-to-date (YTD) decline standing at 3.6%, compared to Coterra's 4.3% decline. However, it's worth noting that Dow Jones Industrial Average (DOWI) has a YTD gain of 7.1%.

Despite the current market conditions, OXY stock has shown signs of recovery. Over the past three months, it has soared nearly 14.8%, surpassing the DOWI's 7.9% return during the same period. On Aug. 7, OXY's stock price increased by 2.5% following its Q2 2025 earnings report.

However, the optimism is tempered by the consensus rating among analysts, which stands at "Hold." The average price target for OXY stock among analysts is $50, implying about 5% upside from current levels.

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OXY is a diversified energy and chemicals company with operations in oil and gas, chemicals, polymers, petrochemicals, and midstream & marketing. The company's stock has retreated 17.3% from its 52-week high of $57.57, reached in August 2024.

In conclusion, while Occidental Petroleum Corporation (OXY) faces challenges in the current market, its strong position in the oil and gas industry, focus on low carbon technologies, and recent signs of recovery suggest a company worth keeping an eye on.

Is the stock performance of Occidental Petroleum lagging behind that of the Dow Jones Industrial Average?