#2 - Occidental Petroleum (NYSE:OXY)
If inflation does trend higher, oil prices will be a likely cause. That means oil stocks should be on your radar, and Occidental Petroleum Co. (NYSE: OXY) is one of the top names to consider.
Despite oil prices being range-bound for much of the last 18 months, analysts still expect that crude oil prices will reach or exceed $100 by the end of the year. Geopolitical events are one cause. Another would come from even one interest rate cut, which will spur business spending.
And even if the price of oil doesn't spike as expected, investors in OXY stock benefit from a "Buffett put." The reasoning is that a price of around $58 has served as a buying point for Mr. Buffett.
One reason Buffett is bullish on the company is its strong cash flow, which is accelerating. Occidental has already announced that it plans to use more of that cash flow to reward shareholders in the future, most likely in the form of share repurchases.
Occidental Petroleum stock has become more attractive as a defensive stock since it began increasing its dividend after cutting it sharply in 2020.
About Occidental Petroleum
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.
Read More - Current Price
- $47.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 7 Buy Ratings, 13 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $62.10 (31.8% Upside)
