One Golden Oil Buy ($OXY)
There are always oil stocks that are good and those that are bad. Let’s focus on the positive end of things, and looks at a good oil stock buy. We haven’t heard much from Occidental Petroleum, but it looks like they are on track for investor success. Let’s turn to Takeover Analyst for OXY details.
Occidental trades at a respective 10.5x and 9.3x past and forward earnings with a dividend yield of 2.5%. Consensus estimates for Occidental’s EPS forecast that it will decline by 0.5% to $8.35 in 2012, grow by 12.7% in 2013, and then fall by 1% in 2014. Assuming a multiple of 12x and a conservative 2013 EPS of $9.36, the stock would hit $112.32 for 28.1% upside.
Analysts currently rate this oil & gas company a strong buy. Most of Occidental’s production is in liquids, which enables to exploit Brent crude trends while volume increases. Management has done a stellar job in cutting costs over the years and will be able to leverage that strength with increases to scale. Operating cash flow of $12.3B also enables takeover activity for even greater growth.
If you like what you see with OXY, it would be worth the further research. We have favored this stock in the past, and it looks like they are on track for our favoring again!
Quotes taken from report by Takeover Analyst, Read the entire article here.
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