Should You Buy Occidental Petroleum Stock Before Feb. 18?

Core Viewpoint - Occidental Petroleum is expected to report its fourth-quarter and full-year earnings on February 18, which could act as a catalyst for its stock price [1] Group 1: Recent Performance - In the third quarter, Occidental Petroleum reported strong financial results, with oil and gas output reaching nearly 1.5 million barrels of oil equivalent per day, exceeding guidance [4] - The company achieved an adjusted net income of $0.64 per share, surpassing analysts' consensus estimate by $0.12 [4] - Higher oil and gas prices contributed to the strong performance, with oil sold at an average of $64.78 per barrel, a 2% increase from the previous quarter, and natural gas prices up 11% [5] Group 2: Market Reactions and Expectations - Despite strong quarterly results, Occidental's stock price showed minimal movement post-earnings, dipping initially before rising over 10% in January due to oil price increases and strategic progress [7] - Analysts predict a challenging fourth quarter for Occidental, with oil prices declining by about 10%, leading to a consensus earnings estimate of only $0.19 per share [9] - Historically, Occidental has beaten analysts' estimates for three consecutive quarters, suggesting the potential for a positive surprise in the upcoming report [10] Group 3: External Factors Influencing Stock Price - Changes in oil prices are currently more significant for Occidental's stock than earnings reports, with potential supply disruptions related to Iran possibly driving crude prices higher [11] - Military action against Iran could lead to a surge in crude prices, positively impacting Occidental's stock [11] - Investors may consider purchasing Occidental shares before the earnings report if they anticipate a spike in oil prices [12]