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Hype Asset of the Day | March 21, 2022



Occidental Petroleum (OXY)


As a result of supply chain issues due to the Russia Ukraine conflict, all things oil and gas have been soaring over the past few weeks. One trending stock in the space is Occidental Petroleum (OXY), a US energy company that frequently conducts gas and oil exploration activities. Despite suffering from the oil collapse in 2020, things are once again on the up and up for Occidental Petroleum with the company's share price climbing from $29 to $60 since the start of 2022, an increase of over 100%. The interest in this stock is high with HypeIndex measuring a 200% increase in mentions over the past few days.


Positives


  • World-renowned investor Warren Buffett has been showing interest in Occidental Petroleum with his company Berkshire Hathaway purchasing an additional $1 billion of OXY shares, bringing their total position to a value of around $7.2 billion.

  • Dividends can provide investors with much-needed cash flow. Occidental Petroleum has recently increased its dividend offerings from $0.01 per quarter to $0.13 a massive 1200% increase.

  • Due to international sanctions preventing many countries from doing business with Russia, there’s been a big focus on alternative oil sources. Therefore, it stands to reason that exploration companies like Occidental Petroleum are likely to do well over the coming months,

  • Occidental Petroleum has focused a portion of its efforts in ensuring their wells are extremely efficient, even boasting they have the most efficient wells in the Delaware Basin.

  • As a result of its merger with Anadarko Petroleum, Occidental Petroleum ended up with a large pile of debt. While this would typically be worrying for investors, with the recent surge in oil prices the company could repay these debts far quicker than expected, which in turn would send the company’s share price flying.

Negatives


  • Analysts seem concerned with the short term potential of Occidental Petroleum due to the company’s recent rapid growth. With that said, most seem to be increasing their end of year estimates, at least marginally.

  • Despite Occidental Petroleum increasing dividends by 1200%, this rate is still far below its pre-oil collapse quarterly yield of $0.79. Despite things looking good for Occidental Petroleum, it’ll likely take quite a while to hit numbers like that again.


Hype Asset of the Day - Conclusion


Occidental Petroleum is an interesting stock in a highly competitive sector. Despite fierce competition, there seems to be massive hype surrounding the energy company, likely due in part to its focus on exploration. With even Warren Buffett betting big on the company, it could be a great time to begin building a position in Occidental Petroleum before investors pile in. This is further evidenced by a massive 200% increase in hype over recent days. If you’re interested in finding more Hyped Assets check out our premium plans or if you’d like to learn more about HypeIndex you can head over to our FAQ page.


HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.





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