Occidental Petroleum (OXY)

I opened my Tiger Brokers app yesterday and noticed a notable surge in Occidental Petroleum (OXY) stock. The stock closed at $42.69, up 3.02% from the previous trading day — a strong move that immediately caught my attention.

Occidental (OXY)

One likely catalyst behind this rally is the recent rise in global oil prices, perhaps fueled by escalating geopolitical tensions in Ukraine and Iran. Concerns over supply disruptions continue to unsettle markets, driving crude prices higher and providing a tailwind for energy stocks like OXY.

Additionally, the latest announcement from OPEC+ regarding a modest production increase of just 411,000 barrels per day in July came in below market expectations. This smaller-than-expected output bump signals that supply constraints may persist, further supporting oil prices. For OXY, a major U.S. oil and gas producer, this could translate into stronger profit margins and cash flow in the near term.

From a valuation standpoint, I’ve long felt that OXY has been undervalued relative to its peers, especially considering its impressive asset base. The company has made significant strides in deleveraging its balance sheet and improving operational efficiency.

Another compelling reason for my optimism is Warren Buffett’s confidence in the company. His conglomerate, Berkshire Hathaway, has been steadily building a large position in OXY, now owning a significant stake. Buffett's track record in the energy sector speaks volumes, and his investment provides an additional layer of validation for long-term investors like me.

Looking ahead, OXY also offers regular dividends, with an upcoming ex-dividend date on June 10, paying $0.24 per share. For income-focused investors, this adds another dimension to the investment thesis.

In summary, with strong fundamentals, supportive macro conditions, strategic investor backing, and regular dividends, OXY is shaping up to be more than just a short-term trade. It’s a stock worth watching — or holding — as the energy sector continues to evolve.

May is Done! How Do You Expect June Movement?

S&P 500 has risen 6.15% this month, marking its best monthly gain of the year. After April’s sell-off and May’s surge, did you make any money? There’s a saying: “Sell in May and go away.” Will you follow it? Interestingly, the market clearly ignored that advice last year. However, June hasn’t historically been a standout month in terms of performance. Historically, the market has NEVER made the top for the year in the month of June. (since 1980) Will you continue to hold or take profits? Will June defy seasonal patterns, or see a temporary cooldown?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

JimmyHua
06-05
JimmyHua
Solid post! OXY definitely checks the boxes for a long-term hold—strong cash flow, Buffett’s backing, and now riding the energy wave. Not a bad pick for steady gains and some passive income along the way. Might just keep it on my watchlist! 🔍📈💼
Valerie Archibald
06-07
Valerie Archibald
This will stay at or below $45 for a long time.
Mortimer Arthur
06-07
Mortimer Arthur
As always OXY is the worst performing stock in the sector.......
cheezzy
06-05
cheezzy
Interesting take