Should Value Investors Buy Occidental Petroleum (OXY) Stock?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company to watch right now is Occidental Petroleum (OXY). OXY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. Another valuation metric that we should highlight is OXY's P/B ratio of 1.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.70. OXY's P/B has been as high as 1.94 and as low as 1.27, with a median of 1.65, over the past year.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OXY has a P/S ratio of 2.29. This compares to its industry's average P/S of 2.84.Finally, we should also recognize that OXY has a P/CF ratio of 4.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. OXY's P/CF compares to its industry's average P/CF of 5.27. Over the past 52 weeks, OXY's P/CF has been as high as 4.78 and as low as 3.32, with a median of 4.31.Value investors will likely look at more than just these metrics, but the above data helps show that Occidental Petroleum is likely undervalued currently. And when considering the strength of its earnings outlook, OXY sticks out as one of the market's strongest value stocks.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks