Warren Buffett Keeps Buying Occidental: Will Q4 Earnings Prove Him Right?

Occidental Petroleum Corp OXY will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects 70 cents in EPS and $7.05 billion in revenues as the company reports after market hours.

The stock is down 19.31% over the past year, 3.51% year-to-date.

Warren Buffett Keeps Loading Up

As Occidental Petroleum gears up for its fourth-quarter earnings, all eyes are on Warren Buffett's continued buying spree. Berkshire Hathaway now holds a 28.24% stake in the company, undeterred by Occidental's over 30% drop from its April peak.

Buffett's long-term conviction contrasts with recent market pessimism, largely driven by declining crude oil prices. Occidental's focus on debt reduction and its push into carbon capture technology could offer a more resilient long-term outlook.

With Buffett steadily accumulating shares and holding warrants for more, investors may wonder if he sees hidden value the market has overlooked.

Let’s look at what the charts indicate for Occidental stock and how the stock currently maps against Wall Street estimates.

Read Also: How To Earn $500 A Month From Occidental Petroleum Stock Ahead Of Q4 Earnings

Occidental Faces Bearish Trend

Occidental’s stock, at $48.06, is trading below its five-day, 20-day and 50-day exponential moving averages (EMA). This sustained selling pressure suggests a risk of further bearish movement.

Chart created using Benzinga Pro

The stock is also below its 20-day simple moving average (SMA) of $48.56 and its 50-day SMA of $48.89, reinforcing the short-term downtrend. Additionally, Occidental's position below its 200-day SMA of $54.94 signals broader weakness in the longer-term technical outlook.

Momentum indicators paint a mixed picture. The Moving Average Convergence Divergence (MACD) indicator stands at a negative 0.54, confirming the bearish trend. However, the Relative Strength Index (RSI) is at 45.97, suggesting that while the stock is under pressure, it is not yet in oversold territory.

A key technical level to watch is the eight-day SMA of $47.73, which currently offers a bullish signal. If Occidental can regain its 20-day SMA, it could indicate a potential trend reversal.

Otherwise, continued weakness may see the stock testing lower support levels.

Occidental Analysts See 5% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Occidental's stock stands at a Neutral currently with a price target of $62.10. Goldman Sachs, Truist Securities and Piper Sandler’s latest ratings suggest a 5.02% upside for OXY stock with a $51.33 average price target.

Price Action: Occidental stock closed the trading day Friday at $48.06, up 0.38%.

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