Occidental Petroleum: Warren Buffett Buys Again, So Should You

Summary

  • Warren Buffett's recent purchases of OXY prove he's a good market timer, as his buys coincided with the OXY stock reaching its supply zone.
  • Despite some weaknesses during Q1, OXY demonstrated some improvements in its financial position, as far as I see it.
  • OXY's superior FCF yield [TTM] could be a key factor that attracted Warren Buffett to invest in OXY, seeking a liquid company with strong management.
  • Currently, OXY's stock is valued at 12 times FY2023 earnings, and the projected year-over-year EPS decline of nearly -48% seems too pessimistic to me.
  • I reiterate my previous Buy rating on OXY stock and support Goldman's target of $77 per share.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

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Intro & Thesis

I've been covering the stock of Occidental Petroleum Corporation (NYSE:OXY) here on Seeking Alpha since early October 2022, and that time coincided with a fairly difficult period of falling energy commodity prices, so most

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This article was written by

Danil Sereda profile picture
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Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OXY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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