Occidental Petroleum Set To Release Q3 Earnings: Can It Justify Warren Buffett's Vote Of Confidence?

As Occidental Petroleum Corp OXY gears up to announce its third-quarter earnings on Tuesday after the close, investors are asking: Can the oil giant overcome its stock slump?

Buffett Bets Big As Occidental Struggles: Q3 Earnings On Deck

Occidental shares have taken a hit this year, down over 15%, while Warren Buffett's Berkshire Hathaway has been steadily increasing its stake, now holding 27.25% of the company.

With Wall Street's third-quarter consensus at 74 cents in EPS and $7.23 billion in revenue, analysts and Buffett-watchers alike are eager to see if Occidental can justify the Oracle's vote of confidence.

Buffett's investment rose to 5.93% of Berkshire's portfolio in the second quarter, signaling his bullish outlook — but can OXY deliver?

Read Also: How To Earn $500 A Month From Occidental Petroleum Stock Ahead Of Q3 Earnings

Occidental Charts Flash Bearish Signals As Earnings Loom

OXY's stock chart and recent trading activity isn't exactly inspiring confidence.

Chart created using Benzinga Pro

The stock trades below its 20, 50 and even 200-day simple moving averages (SMAs), with a MACD (moving average convergence/divergence) of negative 0.61 and an RSI (relative strength index) of 44.85, indicating continued bearish momentum.

Though its price of $50.81 sits just above the eight-day SMA of $50.57 (a tentative bullish signal), it's below the key 20-day SMA of $50.99, painting a mixed technical picture.

VanEck Ups The Ante, Following Buffett's Lead

OXY's shaky price action didn't stop VanEck Associates from doubling down, upping its OXY holdings by 124.5% last quarter, now worth nearly $948,000.

This institutional boost might indicate confidence in OXY's potential rebound — a sentiment Buffett himself seems to share.

Will Buffett's faith in OXY's future pay off, or are these big bets headed for more turbulence? As Occidental reports earnings, the market's about to find out if the Oracle's faith was well placed.

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