#2 - Occidental Petroleum (NYSE:OXY)
Warren Buffett is heavily invested in the energy sector. Two of Berkshire’s biggest holdings are Chevron Corp. (NYSE: CVX) and Occidental Petroleum Inc. (NYSE: OXY). Both companies are well-managed and have solid balance sheets. But based on Buffett’s trading activity in the last 12 months, the nod goes to Occidental Petroleum.
The energy sector - specifically oil stocks - is expected to move higher with lower interest rates in the United States. A lower cost of money is likely to stimulate business spending. And if that spending involves moving goods around the world, that means higher oil demand. Add in geopolitical uncertainty, and you can see why the market is about to see a spike in crude oil prices.
Berkshire Hathaway has made several purchases of OXY stock in the last 12 months. As of this writing, the stock is in what has been labeled the “Buffett buy zone,” under $60 per share. Buffett may be content with Berkshire’s current position, which translates to a 29% stake in the company, but other investors should note that Occidental Petroleum's portfolio of assets, including those in the Permian Basin, puts it in prime position when oil prices move higher.
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
- $50.56
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 11 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $65.72 (30.0% Upside)
